The worlds number two chipmaker, Samsung Electronics has apparently revealed they are to shell out some 1.9 billion dollars to construct a new logic chip line for mobile processors as smartphone and tablet demand expands, and hopes the new line will be complete by the end of the year.
According to Reuters, Samsung makes application processors for their rival, the iPhone and Apple iPad a well as their Samsung Galaxy range of devices and Samsung Galaxy Note devices, with Samsung saying the new line will use 300mm wafers , 20 nanometer and 14nm processing tech.
Apparently Samsung has stated that the new line would help meet the demand for smart mobile solutions, and the $1.9 billion investment follows the company’s recent decision to build their first chip manufacturing plant in China to make NAND flash memory chips that analysts estimate will cost between 4 to 5 trillion won, roughly between $3.4 and $4.2 billion.
According to Gartner, smartphone and tablet chip demand is set to double in 2016 from $23 billion last year up to $59 billion. Apparently ahead of the announcement Samsung shares closed up some 5.2% in a broad market rally which sent the benchmark KOSPI index up some 2.6%.
Old Sammy is boosting up production of logic chips due to the growth in the mobile market outpacing weaker computer sales. So there you have it, old Sammy is readying 20nm and 14nm chips for the mobile space.
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