Samsung to spend 20% more on fabs this year
semibiznews.com
A service of Semiconductor Business News, CMP Media Inc.
Story posted 2:15 p.m. EST/11:15 a.m. PST, 3/5/99
By Jack Robertson
WASHINGTON -- Samsung Electronics Co. today confirmed that it is
boosting its semiconductor capital spending by 20% this year to $1.2 billion.
The jump reflects the Korean chip maker's decision to ramp up DRAM and
other chip production as the global market appears to be improving.
Only a month ago, Samsung said it was still sticking with a $1 billion capital
expenditure budget for 1999, which was essentially the same as last year.
However, industry sources and analysts said the world's largest DRAM
producer is responding to the big ramp-up by archrival Micron Technology
Inc. The Boise, Idaho, memory maker expects to double its DRAM output
next year when upgraded former Texas Instruments fabs are producing
wafers at 0.18-micron design rules.
A Samsung spokesman in Seoul said the capital investment will be used to
upgrade and fill production lines at existing fabs in Korea and the firm's
Austin, Tex., fab. Samsung has been placing major equipment orders to
complete its Fab 9 line at Kiheung, South Korea. A second stage expansion at
the Austin fab will double production to a capacity of about 25,000 wafers a
month.
As previously reported, the Korea Semiconductor Industry Association
projected that all chip makers in the country would double their spending on
equipment this year to $2.6 billion (see Feb. 24 story). |
