The Korea Herald


Samsung only chipmaker to expand capex in 2015: sources

By KH디지털2

Published : May 12, 2015 - 09:56

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Samsung Electronics Co., South Korea's top tech giant, is expected to become the only major chipmaker around the globe to expand facility investment this year, industry sources said Tuesday.

According to the sources, global industry leader Intel Corp. is expected to allocate US$8.7 billion to facility investment this year, down $1.3 billion from 2014.

Taiwan Semiconductor Manufacturing Co. is also expected to slash the amount by $1 billion to $10.5 billion this year.

In contrast, Samsung announced in January that it will expand capital expenditures this year, though it failed to disclose by how much.

Last week, Samsung made strides to solidify its chip sector this yea by breaking ground on its new chip-production line in Pyeongtaek, some 70 kilometers south of Seoul.

Scheduled to be ready for production in the first half of 2017, Samsung will pump in 15.6 trillion won ($14.2 billion) for the first phase of the project, marking its largest-ever investment in a single production line.

The South Korean tech giant spent 7.2 trillion won in its facility investment in the first quarter of 2015, with the chip segment accounting for 4.4 trillion won. At least 15 trillion won will be spent on the area by the end of this year, industry watchers said.

Last year, Samsung spent 23.4 trillion won on new equipment and plants, 60 percent of which went to the chip sector.

Samsung, meanwhile, has recently commenced mass production of the most advanced mobile application processor that incorporates 14-nanometer FinFET technology, narrowing gaps with TSMC in the foundry segment. (Yonhap)