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Samsung planning on investing $33 billion in chip research

Eight new fab lines planned
Thu Sep 29 2005, 20:23
SAMSUNG SAYS THAT it will invest $33bn in chip research over the next seven years.

The outfit is also considering getting into the chip-foundry business and opening a second US factory. Samsung plans to open eight fab lines and another R&D line in Hwaseong, south of Seoul. The plant already has five fabs and one R&D line.

The big idea is that Samsung wants to get its revenue to $61bn a year in comparison to its $16.28 billion in 2004. It is all part of a big idea to diversify Samsung's product lines. The company was walloped by a a supply glut in the April-June quarter which drove down DRAM prices. To cope with that Samsung got into NAND flash memory and made a killing.

Out of the eight new fabrication lines planned, Samsung said four will handle 300-millimeter or larger wafer units. If Samung does plough ahead with its cunning plan to get into the chip foundry business then it will find itself competing with Taiwan Semiconductor Manufacturing and United Microelectronics. µ


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