Samsung investing $908M in memory line upgrade

The investment is part of Samsung's 2008 investment plan of $10.5 billion (11 trillion won), with about 64% it earmarked for memory products such as DRAM and flash.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 5/27/2008

To meet the growing market demand and strengthen cost competitiveness by maximizing production capacity, Seoul, Korea-based consumer electronics and memory giant Samsung Electronics confirmed today that its management committee Monday approved a $908 million (946.8 billion South Korea won) investment to expand and upgrade its existing memory lines.

The investment is part of Samsung’s 2008 investment plan of $10.5 billion (11 trillion won), with about 64% it earmarked for memory products such as DRAM and flash, news reports said.

Samsung, along with other memory makers are expecting the memory industry to turn a corner in the second half of the year following severe memory price drops of the recent past. 

The company did not release further details as to which manufacturing lines would be upgraded.

Earlier this month, in order to maintain a reasonable cost structure for future integrated circuit manufacturing and applications, Samsung, along with Intel and TSMC announced they had “reached agreement” that the industry needs to start working together to transition to the 450-mm wafer size.

The memory giant has been buffeted not only by memory price drops but the departure of Samsung group chairman Lee Kun-hee in April.