SEOUL, Feb. 7 (Korea Bizwire) — South Korean tech giant Samsung Electronics Co. has approved a preliminary investment plan to set up a second chip-production line near Seoul, an industry source said Wednesday.
The Management Committee — the top decision-making body at Samsung Electronics — held a meeting earlier in the day and endorsed the plan without opposition, the source said.
The committee is composed of three top Samsung executives, Kwon Oh-hyun, Yoon Boo-keun and Shin Jong-Kyun.
Samsung Electronics said it had no comment.
The decision, if confirmed, would mark the first major investment since Samsung Electronics Vice Chairman Lee Jae-yong was released from prison earlier this week after being locked up for nearly a year over a bribery scandal that led to the ouster of former President Park Geun-hye.
On Monday, a Seoul appeals court handed down a 2.5 year prison term and set him free on four-year probation. The ruling means that Lee will not have to serve further prison time if he stays out of trouble during that period.
A second chip-production line in Pyeongtaek would increase Samsung Electronics’ production capacity of semiconductors amid rising demand.
Pyeongtaek, a city located some 70 kilometers south of Seoul, is already the home of Samsung’s chip-production line. The production line began churning out chips in July 2017.
Samsung Electronics has a chip-production line in Xian, China, and another chip-production line in Austin, Texas.