Samsung to Invest US $14.7 Billion in Chip Plant in South Korea

Samsung to Invest US $14.7 Billion in Chip Plant in South Korea Samsung Electronics will be investing US$14.7 billion to construct a new chip plant in South Korea. The new set up will help to meet the increasing demand from smartphones venturing into computing and the rapidly growing market of 'Internet of Things.'

The factory will be constructed in a 790,000 square meter location in Godeok Industrial Complex in Pyeongtaek.

On Monday, Samsung said that the construction will start in the first half of the coming year. Operations in the location are scheduled to start sometime in the latter half of 2017.

A spokeswoman from the company said that any decision has not been taken yet about the kind of chips that will be made here or the manufacturing process that will be used in the new plant.

In July, the company said that by the end of this year it was on its way to start a 14-nanometer manufacturing process in volume.

On Tuesday Samsung is about o come out with its third-quarter earnings guidance. The company said, that in July its second-quarter profit dropped almost by 20 percent year-on-year. The result is attributed to the competitive pricing in phones that come in the mid and low range from Chinese manufacturers and also to the lethargic demands seen in Europe.