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Samsung to pump $34bn into its chip fab biz

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Samsung Electronics is planning to invest 38 trillion won (£21.3bn, $33.9bn) in its business next year, up over a quarter from the around 30 trillion won it invested this year, industry sources told local media.

The Korean chaebol will be focusing its investments in its System LSI division and in OLEDs, website Edaily said, citing industry and Samsung officials (if the story has been deciphered properly by Google Translate).

The System LSI unit, part of Samsung's semiconductor businesses, makes microcomponents and integrated circuits for mobile devices and home and media electronics – which would include chips for its own Galaxy line-up as well as the chips it supplies to its patent-litigation-nemesis Apple for Cupertino's iPhones.

Samsung's OLED displays are also smartphone components, as well as being used in digital cameras.

The company will be putting £8.4bn into its semiconductor business, of which £4.5bn will be earmarked for the system LSI division.

Samsung will also be ploughing £3.9bn into OLED displays at the same time as it more than halves its investment in LCD from £2.3bn to £1.1bn.

The Korean firm, whose wins in mobile chips, smartphones and fondleslabs have helped offset losses in PC chips and tellies, plans to sink £5.6bn into software and R&D. ®

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