SEOUL, South Korea Samsung Electronics Co. Ltd. said Monday (Oct. 16) it has revised its annual capital expenditure plan for this year by setting aside more than 1 trillion won ($1.05 billion) on top of its original projection.
Amid announcing its earnings results for the third quarter ended Sept. 30, the world's top memory chip maker said it has managed to raise its capital spending by 1.01 trillion won ($1.05 billion) to 10.24 trillion won ($10.7 billion) for this year. The revised figure was compared to 10.04 trillion won in 2005 ($10.5 billion).
Samsung said it has increased the expenditures for the memory chip business to 5.60 trillion won ($5.9 billion) from 4.58 trillion won ($4.8 billion), which was originally set for this year. The company added 220 billion ($230.1 million) won to an originally projected 2.37 trillion won ($2.5 billion) for its LCD panel business.
During the first three quarters of this year, Samsung spent 4.46 trillion won ($4.7 billion) in capital spending for the memory chip segment and 1.88 trillion won ($1.97 billion) for the LCD segment, respectively, according to the company. The company's total capital spending amounted to 7.6 trillion won ($7.95 billion) during the first nine-month period.
In a move to supplement the capital spending revision plan, Samsung will cut down on the yearly investment planned for the telecommunications business division to 260 billion won ($272 million) from 540 billion won ($564.7 million). It spent 160 billion won ($167.3 million) for the business segment during the first three quarters of this year.
In the third-quarter earnings report, Samsung said operating profits in the memory chip business largely contributed to its brisk quarterly performance, citing strong demand for memory chips from the PC market.
Samsung expected the global PC market, the main destination for its DRAM chips, to show the highest quarterly growth rate of 13 percent during the fourth quarter. It also anticipated a seasonal demand pickup for mobile and graphic DRAMs.
The company also announced it plans to boost monthly production capacity of its Gen-7 LCD line to 151,000 units of glass substrates in the fourth quarter from the third quarter's 133,000 units, in a bid to meet increasing demand of LCD panels for monitors, notebooks and 40-inch level LCD TVs worldwide.