Samsung to make record high investment in semiconductor… Expected investment amount- KRW 24.5 trillion
Park Jung Il | comja77@ | 2017-05-17 11:04:22
Samsung Electronics, which aims to become the world`s largest semiconductor maker, is expected to make the record high investment in facilities this year. The investment amount is expected to reach KRW 24.5 trillion, more than usual KRW 10 trillion.
Shinhan Financial Investment & Securities stated that Samsung Electronics` semiconductor CAPEX this year will reach KRW 24.5 trillion, an 85.6% increase from last year. It is KRW 980 billion more than the record-high KRW 14.7 trillion investment in 2015.
Choi Do-yeon, a researcher at Shinhan Financial Investment Corporation, has predicted that KRW 8 trillion would be invested in non-memory semiconductors such as NAND flash, which price is rising due to lack of supply recently at KRW 12.5 trillion and foundry. He mentioned, "Samsung Electronics, which overpowered second-tier companies in 3D NAND mass production technology, is expected to be able to expand its mid to long-term market share with new investments." He also added, “The investment will be on the second floor of Pyeongtaek 18L and the second new Fab in China. The company will continue to invest in 3D NAND without any loopholes following the current Pyeongtaek 18L first floor investment."
A Samsung Electronics representative said, "Although we have not yet decided on our investment plan this year, we expect it to increase more than last year," he predicted. In the first quarter of this year, Samsung Electronics invested a total of KRW 9.18 trillion in facilities, including KRW 5.22 trillion in semiconductors and KRW 4.16 trillion in display.
There are also similar prospects in the industry. According to the prospects, it is possible to invest more than KRW 20 trillion if the new facility construction starts soon after the first floor of the 18th line of the Pyeongtaek plant, which is scheduled to be operated this year, and the investment is made simultaneously to Hwaseong and China.
The industry expects that Samsung Electronics will strengthen its investment in memory semiconductors, which are rising in price, and to be the number one in the world semiconductor industry this year.
According to market researcher IC Insights, Samsung Electronics recorded revenue of USD 13.6 billion in the semiconductor business in the first quarter of this year, and narrowed revenue gap with Intel to USD 600 million, and expecting Intel to reverse in the second quarter. An industry expert said, "Samsung Electronics is likely to make an aggressive investment considering the stronger market conditions, such as a worsening supply situation and the issue of Toshiba`s sale of its semiconductor business."
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
Shinhan Financial Investment & Securities stated that Samsung Electronics` semiconductor CAPEX this year will reach KRW 24.5 trillion, an 85.6% increase from last year. It is KRW 980 billion more than the record-high KRW 14.7 trillion investment in 2015.
Choi Do-yeon, a researcher at Shinhan Financial Investment Corporation, has predicted that KRW 8 trillion would be invested in non-memory semiconductors such as NAND flash, which price is rising due to lack of supply recently at KRW 12.5 trillion and foundry. He mentioned, "Samsung Electronics, which overpowered second-tier companies in 3D NAND mass production technology, is expected to be able to expand its mid to long-term market share with new investments." He also added, “The investment will be on the second floor of Pyeongtaek 18L and the second new Fab in China. The company will continue to invest in 3D NAND without any loopholes following the current Pyeongtaek 18L first floor investment."
A Samsung Electronics representative said, "Although we have not yet decided on our investment plan this year, we expect it to increase more than last year," he predicted. In the first quarter of this year, Samsung Electronics invested a total of KRW 9.18 trillion in facilities, including KRW 5.22 trillion in semiconductors and KRW 4.16 trillion in display.
There are also similar prospects in the industry. According to the prospects, it is possible to invest more than KRW 20 trillion if the new facility construction starts soon after the first floor of the 18th line of the Pyeongtaek plant, which is scheduled to be operated this year, and the investment is made simultaneously to Hwaseong and China.
The industry expects that Samsung Electronics will strengthen its investment in memory semiconductors, which are rising in price, and to be the number one in the world semiconductor industry this year.
According to market researcher IC Insights, Samsung Electronics recorded revenue of USD 13.6 billion in the semiconductor business in the first quarter of this year, and narrowed revenue gap with Intel to USD 600 million, and expecting Intel to reverse in the second quarter. An industry expert said, "Samsung Electronics is likely to make an aggressive investment considering the stronger market conditions, such as a worsening supply situation and the issue of Toshiba`s sale of its semiconductor business."
By Park Jung Il comja77@