Samsung ploughs £1.2 billion into logic chip line

Samsung is pumping up the production of logic chips for mobile devices, as the smartphone and tablet boom continues to reverberate through the electronics industry.

The Korean firm says it will spend a cool $1.9 billion (£1.2 billion) on the new line, reinforcing its status as the world's number two chip manufacturer behind Intel. The latest products will use 300 mm wafers and 20nm processing technology.

With smartphone and tablet consumption drastically outstripping computer sales, the investment represents the proverbial ‘no-brainer' for Samsung. Demand for system chips used in mobile devices is expected to double to $59 billion (£38 billion) in 2016 from $23 billion (£15 billion) last year, according to research group Gartner.

Samsung's production caters for application processors in Apple's rival iPhone and iPad, as well its own Galaxy and Note range.

The plan's announcement follows the company's recent decision to build its first chip manufacturing plant in China, which is costing around an estimated $4 billion ($2.6 billion). It will also be one of the first major production ventures under the stewardship of newly-named CEO, Kwon Oh-hyun.

Source: Reuters