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selinz
Investment in the future is always good as long as the predicted future ends up ...
David_S
Samsung should do the world a favor and buy North Korea
Samsung plans $41 billion logic, OLED investment spree
Peter Clarke
1/17/2012 8:03 AM EST
LONDON – Amidst a troubled global economy Samsung has set a record investment budget for 2012 of 47.8 trillion won (about $41.7 billion) for its operations, according to reports.
The company is expected to focus particularly on logic chips and OLED displays. The high-spending strategy is expected to augment its already dominant position in memory ICs and liquid crystal displays, as the company seeks to put distance between itself and rivals, reports said.
The company also plans to employ an additional 26,000 staff, up from the 25,000 new hires it made in 2011. Samsung now employs about 350,000 staff, according to a Reuters report.
Group capital spending is expected amount to 31 trillion won (about $27 billion) up 11 percent on 2011. Some 80 percent of that (about 25 trillion won or $22 billion) is to be spent by Samsung Electronics Co. Ltd. to boost manufacturing capacity for logic chips, MEMS sensors and OLED displays as well as memory and LCD production. The logic chip manufacturing is likely to focus on Samsung's ambitions to make application processors and system chips for mobile phones and tablet computers.
Investment in logic chips, at 7.5 trillion won (about $6.5 billion), is set to exceed investment in memory chips, at 6.5 trillion won (about $5.7 billion) for the first time. Investment in OLEDs is expected to go up from 6 trillion won in 2011 to 7 trillion won (about $6 billion).
Samsung had 22 trillion won (about $19 billion) in cash as of the end of September and is set to report a record 5.3 trillion won (about $4.5 billion) fourth-quarter operating profit after great Q4 success selling its Galaxy line of mobile phones. Samsung said Monday it planned to issue around $1 billion in bonds in the U.S. to help fund its chip unit.
Samsung is expanding spending while its local rival LG is cutting back and Japanese rivals Sony, Toshiba, Sharp and Hitachi are struggling to keep pace. Those four companies are set to spend a combined 1.3 trillion yen (about $16.6 billion) in the current fiscal year, which ends on March 31.
Samsung Group revenues account for about 20 percent of South Korea's 1,200 trillion won annual GDP.
Related links and articles:
Taiwan now the world's leading chip maker
Analyst: Samsung eyes foundry business with logic move
Analyst: Samsung likely to pass Intel in ICs
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yalanand
1/17/2012 10:12 AM EST
This is very good news for semiconductor industry. This shows that technology sector is expanding in-spite of recession fears.
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KB3001
1/17/2012 10:40 AM EST
Display is going to be a major differentiator in mobile devices. Samsung is planning ahead very well.
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lonecowboy
1/17/2012 11:58 AM EST
Samsung is expanding like swallowing all the rivals. Chairman Mr.Lee's nickname is South Korea's number two behind the Korean president who is number one. Well, his company Samsung Electronics is already a global number one in electronics industry though. Survival of the fittest.. bloody.. so bloody..
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chipmonk
1/17/2012 1:13 PM EST
March of times.. !
Inevitable result of trying to sell high value products to low income countries by dissipating technology
When would Intel too have to close its Fabs ?
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luting
1/17/2012 1:52 PM EST
TSMC might be in trouble with that amount of investment in Logic.
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PJames
1/17/2012 4:50 PM EST
"Samsung Group revenues account for about 20 percent of South Korea's 1,200 trillion won annual GDP"
If this is correct it is a stunning fact. A company with 350,000 employees accounts for 20% of GDP of a country with 50 million?
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hm
1/17/2012 10:04 PM EST
Very encouraging news for semiconductor industry. We wish to see more innovative products from Samsung.
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kdboyce
1/18/2012 1:25 AM EST
At least they are really focusing $$$ and manpower on that area instead of trying to do innovation on a shoestring budget or via skunk works projects. If successful the payoff is big.
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kinnar
1/18/2012 2:20 AM EST
Research and Development focus towards OLED for Large Scale Displays that what was eagerly waited from some giants and Samsung has become the first one to take that opportunity, the world will be having a very revolutionary era in the displays segment in the coming years.
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phoenixdave
1/18/2012 6:33 AM EST
Their early investment in LCD display market proved to be very wise, and I would think that they are also looking forward with OLED technology replacing LCD in the next few years. Having both product areas enables them to retain market share. While one is ramped up, the other can be ramped down.
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David_S
1/19/2012 3:34 AM EST
Samsung should do the world a favor and buy North Korea
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selinz
1/20/2012 6:29 PM EST
Investment in the future is always good as long as the predicted future ends up being the actual one! OLED displays seems like a winner...
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