The world's No. 1 maker of memory chips Samsung Electronics will halve its facility investment in the semiconductor business next year, local daily Kyunghyang Shinmun reported Wednesday.
Samsung planned to reduce its capital expenditure in 2013, will probably cut its facility investment by up to 50 percent next year on an on-year basis, the paper said.
A senior official at Samsung was quoted as saying "Samsung's 2013 semiconductor capex will be conducted in a very conservative way. Opinions are gathering into a significant cut in facility investment next year.
A Samsung official said by phone that nothing has been decided yet.
Samsung planned to spend 7 trillion won ($6.27 billion) for memory chip investment and 8 trillion won for non-memory investment respectively in 2012.This year it has been proceeding with its largest investment into the chip business in its history.
Due to a drop in chip prices stemming from oversupply the conditions in the global semiconductor industry worsen and a cut in investment was reported.
"Oversupply in the memory market is likely to be resolved, and prices should gradually increase. Thus, we believe that market conditions are likely to improve from 2013," said James Song, an analyst with Daewoo Securities.
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