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Baolt
Comparing Samsung with Philips would be such irrelevant action to do. Philips ...
resistion
The spending seems too rapid, I don't know if they can find anything worth the ...
Samsung mulls $25 bn diversification spend
Peter Clarke
9/6/2010 7:05 AM EDT
LONDON – Samsung Electronics Co. Ltd., a leading integrated electronics company, is considering investing 30 trillion won in 2011 to support existing operations and expand into new areas, according to online reports.
Samsung, a leader in cell phones, televisions, memory chips and liquid crystal displays is looking at biotechnology, life sciences and health-care segments, the reports said.
"It's difficult to set a clear plan for the coming year 2011, but we're considering around 30 trillion won [in investments]," the Wall Street Journal quoted CEO Choi Gee-sung as saying at the Internationale Funkausstellung (IFA) consumer electronics show in Berlin, Friday. Choi said Samsung may consider mergers or acquisitions to increase its presence in biotechnology and health-care businesses.
Such a move would have some echoes of a transition made by Koninklijke Philips Electronics NV from being a consumer electronics giant. Although it still sells some consumer electronics it now classes itself as a "life-style" company with a degree of focus on health products.
Samsung's intimated spend for 2011 would exceed the 26 trillion won earmarked for capital expenditure and R&D earmarked by Samsung for 2010 (see Samsung doubles chip, LCD capex). The emphasis on diversification into biologically-based businesses is, in part, a re-iteration of what the company's chairman said in May (see Samsung to invest $21 billion in green, health businesses).
At IFA Choi said that demand remains strong in the chip market, the WSJ said.
Related links and articles:
Analyst: Samsung likely to pass Intel in ICs
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goafrit
9/6/2010 7:43 AM EDT
Samsung is getting stronger and could possible disrupt this industry. They suddenly have the boldness and capacity to play big. This investment is a big one and real confidence in the outlook of the global economy.
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resistion
9/7/2010 11:02 AM EDT
The spending seems too rapid, I don't know if they can find anything worth the investment in such a short time.
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Baolt
9/7/2010 6:28 PM EDT
Comparing Samsung with Philips would be such irrelevant action to do. Philips semicon lost its market, and had huge spendings which was disturbing its profit, also at consumer electronic biz lost its share to far east players. However Samsung is seriously strong in cell phone, television, memory chip and liquid crystal display businesses as article suggests. This action plan of Samsung would be seen as their new plan to play in other markets, while keeping lead in the rest.
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