Samsung Electronics, the world’s leading maker of memory chips, is not going to weather the storm but is doubling its production capacities. To conquer the market for memory products, mainly modules with high-bandwidth memory, Samsung has received a cash investment of KRW5.6 trillion from its affiliate, Samsung Display.
Therefore it marks an impact-creating milestone for the companies. Trolls, Samsung Display, a notable player in mobile OLED panels, has announced a dividend payment for the first time since it was spun off as a separate entity in 2012. In this regard, this $4.3 billion fund will be earmarked for Samsung. The electronics will be deployed in the incentive package for its Ph.2 semiconductor mega-fab.
The first time shift that Samsung has aggressively invested in can be linked to this process. In its quest to raise funds for the chip, Samsung has decided to sell some businesses. Last year, it transferred more than $25 billion in dividends to overseas branches and contracted a $15 billion loan from Samsung Display. Further capital acquisitions may aspire to buy corporate bonds in addition to private equity investments in 2024.
This technical internal trigger highlights the fact that Samsung is serious about further developing its brand in the semiconductor industry with the growing market. The additional funding of $4.3 billion will undoubtedly increase their production, creating a new memory chip wave on which the future will depend.
