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Samsung to invest US$14.7b in S Korea chip facility

Monday, October 6, 2014 - 09:54
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Samsung Electronics said on Monday that it will invest 15.6 trillion won (US$14.7 billion) to build a new semiconductor production facility in South Korea - PHOTO: AFP

[SEOUL] Samsung Electronics said on Monday that it will invest 15.6 trillion won (US$14.7 billion) to build a new semiconductor production facility in South Korea.

The world's biggest memory chip maker said in a statement that construction of the facility, to be built in Pyeongtaek, will begin in the first half of next year and be completed by the second half of 2017.

Samsung said the facility could produce memory chips or logic chips, but added it has not made a final decision on what will be made there. It did not offer further details such as expected production capacity.

The firm's chip business is expected by analysts to be a bright spot in what they forecast to be an otherwise poor set of results for the third quarter. The group's smartphone business, the world's largest, has been losing market share.

The mean forecast in a Thomson Reuters I/B/E/S survey of 42 analysts calls for a July-September operating profit of 5.6 trillion won, in what would be its weakest performance since the fourth quarter of 2011.

Samsung is expected to issue guidance for its July-September earnings on Tuesday, with full results likely due in late October. - Reuters

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