Samsung Electronics, one of the largest makers of memory chips, said it would invest U.S. $24 billion in its semiconductor business by 2010.
Hwang Chang-gyu, president of the South Korean firm's chip business, also forecast in a press release that semiconductor sales would surge 60 percent this year to a record high. Samsung reported 17.9 trillion won (approx. U.S. $17.2 billion) in chip sales in 2003. Capital investment in the semiconductor business for 2004 is estimated at 5.77 trillion won (approx. $5.5 billion).
Analysts believe Samsung is suffering from falling prices of flat screens for televisions and computers, and a bearish outlook for memory chips. There is also concern that heavier spending on handset marketing could eat into Samsung's profits.
Samsung aims to become a top player in the key mobile chip sector by 2007, and expects the investment will create 10,000 new jobs in its semiconductor business by 2010. (Reuters)
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