Samsung will put in $902 million into memory lines

27 May 2008

Seoul: South Korean technology company Samsung Electronics has announced an investment of around $902 million into upgrading its memory lines in the year 2008.

The investment would be part part Samsung's plan to spend a total of $1 billion across various departments within this year. In a statement to the Korean stock exchange, Samsung said this investment will help maximise production and improve its cost competitiveness.

Samsung is optimistic of the industry bouncing back after a slump that has witnessed falling prices over the past few months, some memory chips having lost around 90 per cent of their value.

Samsung Electronics Co Ltd is a leading memory chip maker, and is reported to have allocated around 64 per cent of the total investment of 11 trillion won on memory products, such as dynamic random access memory and flash memory chips.

Samsung is expected to see its long-suffering chip division turn a corner by the second half after a year-long downward spiral during which prices of some chips lost 90 per cent of their value.