Feeds

Samsung maps huge chip biz expansion

'Critical to success'

  • alert
  • submit to reddit

The essential guide to IT transformation

Samsung is to spend KRW25tr ($24.07bn) expanding its semiconductor production capacity over the next six years, the South Korean giant said this week.

The investment programme, which comes as the world's chipmakers continue to feel the effects of excessive semiconductor purchasing during the first half of the year, will create 10,000 jobs in Asia-Pacific.

Thanks to high levels of customer activity in the early part of the year, Samsung expects 2004 to break sales records. "Sales are expected to be a record-high this year after jumping some 60 per cent from 2003," Samsung Electronics' chip business chief, Hwang Chang-Gyu, said.

Last year, it recorded chip sales of KRW43.58tr ($42.95bn).

But where other firms are less confident about the market going into 2005, Samsung is expecting a good year. In particular, it reckons DRAM sales will rise 44 per cent during 2005, although prices will fall by a "modest" 30 per cent, Joong Ang Daily reports. This is a smaller fall than other market watchers are anticipating.

Samsung clearly believes that it's better to invest now and be ready for the next upturn than wait for high-level growth to return before boosting capacity to cope.

"Pre-emptive investment is critical to success in the chip industry," said Samsung Group chairman Lee Kun-Hee.

This year, the company will have spent KRW4.97 ($4.78bn) on new plant, less than the KRW5.77tr ($5.56bn) it had budgeted for, Samsung said. ®

Related stories

Optimist cuts 2005 chip sales growth target
World chip sales to fall next year - analyst
Q3 chip production up despite downturn
Intel to retain top chip maker title on 04...
Hynix, Micron neck-and-neck in Q3
Samsung phones outsell Motorola's
Americas lead booming mobile phone biz

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?