Samsung promises massive memory investment

Hopes to bolster ailing chip business

27 May 2008 16:33 GMT / By Katie Scott

Samsung Electronics is going to invest a whopping $902.2 million in upgrading its memory products this year.

Though the company is keeping very quiet as to which of its many product lines will benefit, Reuters is hinting that the investment will be ploughed into dynamic random access memory (DRAM) and flash chips.

The amount equates to 64% of the company's planned expenditure for the year, and hopes that the money will "help maximize production and improve cost competitiveness".

Analysts are adding that the move is sure to be part of a larger bid to bolster the company's chip division, after a year of falling sales and slashed prices.

In fact, Reuters says that the prices of some chips lost 90% of their value in just a year.

Despite this, Samsung is predicting that the chip division will recover by the second half of this year.

Full tags

Biz, Samsung, Hardware, Memory cards, Flash drives