Samsung Electronics to Expand Non-Memory Investment
Friday January 16, 9:17 AM
SEOUL, Jan 16 Asia Pulse - Samsung Electronics Co. (KSE:005930) said Friday it will increase investments in its mainstay non-memory chip products by 3.5 times to 1.24 trillion won (US$1.06 billion) this year.
The world's largest producer of memory chips is to earmark 70 per cent of the yearly investment for system large-scale integration (LSI) chips for LCD Driver ICs (LDIs), semiconductors used to drive liquid crystal display panels.
Samsung is to build a new system LSI line in Giheung or Hwaseong, both south of Seoul, said a company spokesman. Some of the money set aside for investment will also go toward LDIs and expansion of non-memory lines at its Giheung plant, about 60 km south of Seoul, he said.
Through the investments, Samsung aims to retain its global No. 1 position in the LDI market for a third straight year with a global market share of 25 per cent.
In the smart card IC sector, too, Samsung aims to move from being the current global No. 2 to No. 1 by next year by securing a 25 per cent share.
"Samsung will continue to expand spending on system LSI products, viewing them as one of its future cash cows to succeed in the memory semiconductor sector," said the spokesman.
In the fourth quarter, Samsung's system LSI business generated sales of 510 billion won, up 16.3 per cent from the previous quarter. In particular, sales of its LDI and system-on-chip businesses posted robust growths of 35 per cent and 24 per cent, respectively.
(Yonhap) |
