Samsung plans to invest more than $1 billion in its Austin, Texas, semiconductor factory by the first half of 2017, as it ramps up chip production to meet demand for mobile and other electronic devices.
The South Korean player, seeking to bounce back from its Galaxy Note 7 recall, said in its Q3 results last week it would invest more than KRW27 trillion ($23.65 billion) on CAPEX, with KRW13.2 trillion on its semiconductor business
In a statement, Samsung said it will use the investment in Austin to fund components for smartphones and other devices.
Since opening the facility in the city in 1997, Samsung said it has invested more than $16 billion there on expansion and maintenance.
“We are committed to Austin and our contributions to the community,” said Catherine Morse, general counsel and senior director public affairs at Samsung Austin Semiconductor (SAS). “This is our home and we want to ensure our community is healthy and prospering. These investments will support this, while also ensuring our customers’ growing needs are met.”
On the back of Samsung’s embarrassing Note 7 recall, the company saw operating profit burn 96 per cent, warning that the situation for its mobile unit may not improve until next year.
Its components division however was a bright spot, and contributed to a large chunk of its overall profit for the quarter.