Samsung to build new fab?

SANTA CLARA, Calif. - Seeking to become a bigger player in the foundry space, South Korea's Samsung Electronics Co. Ltd. dropped hints that it would build a new fab.

During a presentation at the Common Platform technology event here, N.S. (Stephen) Woo, president of Samsung's LSI Division, said that the company would shortly announce a new ''initiative’’ on the manufacturing side.

Woo did not elaborate. Analysts believe that Samsung plans to announce a fab or will upgrade an existing plant.

At present, Samsung has two logic plants, including the S1 Line in Korea. Analysts said the S1 Line is capable of making 50,000 wafers a month. Of those, 15,000 wafers are geared for foundry customers, according to analysts.

The South Korean company recently announced a $3.5 billion fab expansion plan in Austin, Texas. Most of the spending will be funneled into Samsung’s logic business, and much of that will go toward serving Apple requirements, sources said.

Separately, Samsung has increased the stakes in the leading-edge semiconductor business by rolling out a 20-nm process. Amid a slowdown in DRAM, Samsung is reducing its capital spending by 14 percent for 2011.  Samsung tipped its capital spending plans. As reported, Samsung provided its capex forecasts for 2011, including 10.3 trillion won ($9.2 billion) for the semiconductors, 5.4 trillion won ($4.8 billion) for LCDs, and 5.4 trillion won for OLEDs.