Samsung starts construction of large chip factory in South Korea

Samsung has started construction of a new chip production facility in South Korea. In 2017, the extensive facility should be ready for the production of chips for mobile devices and servers. The factory must also give Samsung a head start in the field of internet-of-things chips.

The spade went into the ground at a ceremony that included representatives of the South Korean government, Yonhap writes. According to Samsung, the facility will provide 150,000 jobs. The construction involves an amount of converted 12.7 billion euros and the factory must strengthen and expand Samsung’s position in the chip market.

The site of the facility south of Seoul covers 2.89 million square meters, making it Samsung’s largest chip factory. Currently, Samsung’s largest chip facility covers 1.58 million square meters, while a factory in China covers 1.39 million square meters. It is Samsung’s third chip factory in South Korea.

The new fab will make chips for mobile devices and servers, but Samsung will also focus on the production of small, energy-efficient chips for the Internet of Things. Depending on market conditions, the factory will also make memory chips.