The Korea Herald: Samsung reduces facility investment for 2nd quarter in a row

South Korean tech behemoth Samsung Electronics Co. has scaled down its investment in production facilities for the second quarter in a row apprently in anticipation of a protracted global economic slump, industry data showed Sunday.

The company spent 4.54 trillion won ($4.16 billion) on facilities for semiconductor, liquid crystal display and other products over the July-September period, the lowest level in 10 quarters since it invested 4.14 trillion won in the first quarter of 2010, according to the data.

The data said Samsung Electronics, the world’s largest memory chipmaker and smartphone manufacturer, spent a total of 18.48 trillion won on facility investment in the first nine months of the year. Its investments declined for two straight quarters, from 7.76 trillion won in the first quarter to 6.19 trillion won in the second quarter.

Investments in its semiconductor section fell to 2.29 trillion won in the July-September period, compared with 5.76 trillion won in the first quarter and 3.94 trillion won in the second quarter.

The company also cut its third-quarter investment in its LCD lines to 1.67 trillion won from 1.32 trillion won for the April-June period.

Market watchers said Samsung Electronics moved preemptively to cope with a persistent slump in the global economy, faster than a market forecast that the company would reduce its investment from the new year.

“The amount of our investment is decided in accordance with market conditions,” said an official from Samsung Electronics. “We have to take a careful investment policy now.”

Samsung Electronics took the top place with a market cap of 214.6 trillion won, or 19.04 percent of the total on the country’s benchmark Korea Composite Stock Price Index as of October.

From: www.koreaherald.com


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