Samsung Electronics Co. plans to invest 15.6 trillion won ($14.7 billion) to build a new cutting-edge chip-manufacturing plant in South Korea as it seeks to maintain its lead in memory chips and grow beyond smartphones.
Samsung's chip unit has become increasingly important to its profit growth as its smartphone business--which accounts for about 60% of its total operating profit--continues to suffer from intensifying competition from low-cost Chinese handset makers. Analysts expect demand for Samsung's memory chips to stay strong for the rest of this year amid tight global supply, which will likely lead to firm pricing.
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