Samsung plans record 2012 investment
Company looks to consolidate leading position in flat screens, mobile chips
Samsung Group it is raising its 2012 investment to a record $41.4 billion, as the South Korean conglomerate, which includes Samsung Electronics, seeks to consolidate its position in mobile chips and flat screens, according to Reuters.
Samsung is now putting its money on logic chips and OLED displays, hoping to repeat its previous success in flash chips, computer memory chips and LCD flat-screens.
Samsung Group did not provide a breakdown of the investment, but said that of the total investment, capital spending will amount to $27bn, up 11% from a year ago.
Samsung makes mobile processors, which power Apple's iPhone and iPad as well as its own Galaxy line of mobile products.
Samsung Mobile Display is also a near monopolistic supplier of OLED displays, which are mainly used in high-end mobile gadgets and are set to become dominant in TV screens to replace LCD.
According to Reuters, OLED display revenues are expected to exceed $20bn by 2018 to account for 16% of the total display industry, up from the current 4%.
The record $41.4bn in planned spending is up 12% from 2011 and comes as LG Group, which owns LG Electronics Inc and LG Display, cuts its 2012 investment by approximately $3bn amid uncertain global business outlook.
Samsung has around 80 companies and its total revenues account for some 20% of South Korea's annual gross domestic product.
Shares in Samsung Electronics rose 0.6% on Tuesday, lagging a 1.4% rise in the broader market. Samsung Elec has a market value of about $144bn.