Samsung to change lines to non-memory chip manufacturing

SOUTH KOREA - Samsung Electronics is considering transforming some of its existing memory fabrication manufacturing lines into non-memory ones at its plants in Korea and abroad.

Industry sources and analysts said that the move comes as demand for non-memory chips such as application processors is set to increase on burgeoning smart devices, while personal computers face decline.

AP non-memory chips, which operate much like central processing units for PCs, are key parts for smartphones and other smart devices.

The Korean tech manufacturer's main focus has been producing DRAM and NAND memory chips, which are less efficient with less storage power than non-memory.

Global players such as Intel and Qualcomm have long dominated the non-memory chip sector, analysts noted.

Samsung Electronics mentioned at its last week's earnings conference that line numbers nine and 14 at its Giheung plant in Gyeonggi Province had already been altered to non-memory manufacturing.

"We are pursuing a plan to further change facilities with flexibility," a spokesperson said, adding that no decisions have been made regarding the timeline.

The Korean company had indicated that it will invest 15 trillion won (S$16.5 billion) in the semiconductor business.

As much as 8 trillion won will be invested in developing non-memory chips, an industry source and analysts said.