Online information source for semiconductor professionals

Samsung Electronics to cut capex by 30% or more

09 December 2008 | By Mark Osborne | News > Fab Management

Popular articles

New Product: Applied Materials new EUV reticle etch system provides nanometer-level accuracy - 19 September 2011

Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008

‚??Velocity‚?? the new buzzword in Intel‚??s PQS annual awards - 12 April 2012

Applied Materials adds Jim Rogers to Board of Directors - 29 April 2008

TSMC honors suppliers at annual Supply Chain Management Forum - 03 December 2008

Samsung Electronics said at an investor conference that capital expenditures for 2009 would be significantly reduced in the face of weak demand and poor economic outlook. Giving guidance on CapEx, investor relations executive Chu Woo-sik said that spending could be reduced by as much as 30% in 2009, approximately US$4.84 billion, down from approximately US$6.9 billion in 2008. The executive said that the upper range of spending could be approximately US$5.5 billion. However, a final figure had yet to be reached and changes could be made, inferring that a lower range could be set, depending on market conditions.

Samsung also revised DRAM bit unit growth projections, noting that bit growth would decline from 100% to 90% in the final quarter of 2008. This decline indicates a slowing in either capacity ramps or node migrations as DRAM ASPs decline faster than expected as demand weakens.

Rumours had been circulating in recent weeks that the dire memory market would lead to Samsung making drastic cuts in capital spending with talk of as much as a 50% cut to be expected in 2009.

Without greater clarity, and no final budget yet set due to the economic climate, spending levels could still be revised lower.

Related articles

Samsung Electronics to spend on PFC and SF6 reduction technologies - 21 July 2009

Samsung Electronics reiterates semiconductor capital spending to fall - 31 January 2011

Samsung announces appointment of Chang-Soo Choi as President and CEO - 26 January 2009

Gartner: Samsung‚??s semiconductor capital spending in 2010 tops rankings - 09 August 2010

David Steel to lead Samsung‚??s Marketing team - 14 August 2008

Reader comments

No comments yet!

Post your comment

Name:
Email:
Please enter the word you see in the image below: