Samsung Sticking to Microchip Investment Plans

Despite a slump in the global semiconductor market, Samsung Electronics will stick a plan to invest W7 trillion in computer chips in the second half of this year( US$1=W1,149). Kwon Oh-hyun, the head of Samsung's semiconductor division, confirmed this at the launch of the new growing industry forum held in the National Assembly on Tuesday. This contrasts starkly with other global semiconductor companies like Hynix, Elpida and Power Chip who have decided to cut production this year due to oversupply and the recession. In March, Hynix cut investment plans for the second half of this year from W1.7 trillion to W700 billion.

But Kwon said while the semiconductor industry is in its most serious slump ever, “the crisis offers new opportunities. We won’t be shaken by short-term factors and will stick to our original plan again next year with a long-term outlook.”

Kwon also revealed that takeover negotiations for U.S.-based memory chip maker SanDisk are still in progress. “We are still negotiating the price, and we have finished the legal review to see if we would violate antitrust laws if we acquire SanDisk,” he said. Samsung Electronics last Wednesday officially offered to buy SanDisk for $26 per share, or $5.85 billion in total, but the SanDisk board rejected the offer.