The company said in October last year that it expected the total investment in the semiconductor business in 2020 to be 28.9 trillion won (about 26.5 billion US dollars), 28% higher than that in 2019, reaching a record high. An equipment manufacturer said it had a capacity plan for 2021, which showed that semiconductor investment would increase by 20% to 30% over last year.
 

Compared with Hynix and Meguiar, Samsung has abundant cash flow (@ Nikkei Asia review)

 

 

Compared with other memory chip manufacturers such as Hynix and micron technology in the United States, Samsung's profit margin is quite outstanding, because the company has a strong cash flow, which enables Samsung to invest faster than its competitors, so that it can earn cash while maintaining the market prosperity. Negotiating prices and delivery times with suppliers is also more flexible.

 

Samsung's main investment destination this year will be its main pingze park near Seoul. Samsung will continue to increase its NAND flash capacity at its manufacturing plant in Xi'an, China, and expand its production line at its US plant in Austin.

 

After Huawei's ban, Huawei's smartphone production has declined, and its domestic competitors, vivo, oppo and Xiaomi, are preparing to fill the gap in Huawei's market. In the first three months to September, Huawei's share of global shipments fell to 14.6% from 20.2% in the previous quarter, while Xiaomi's increased from 10.3% to 13.1% in the same period.

 

Before Huawei's ban in the United States, Samsung had already received a lot of memory orders from Chinese mobile phone manufacturers such as Xiaomi, and Huawei had also ordered from Samsung.

 

At the same time, American technology giants are increasing investment in data centers. According to public financial information, the parent companies of Amazon, Microsoft and Google, the three major data center operators in the United States, have invested more than $50 billion in data centers in 2019, and are expected to continue to increase by 30% in 2020. The demand of these companies for processors that can process large amounts of data at high speed and advanced DRAM will help to consolidate Samsung's dominant position.