Samsung Electronics, the Korean company which seems to have bounced back furthest from the economic crisis which struck the region last year, has announced sweeping investment plans, including the construction of major new chip fab and expansion of research and development facilities and staff. With market analysts predicting a sharp upturn in chip sales next year, Samsung said it plans to respond by spending a total of 1.3 trillion won ($1.15bn) in its System LSI Division by 2002.
Senior Samsung officials last week inaugurated work on its new 1 million square-meter Line 10 facility in Hwasung-gun, complementing its existing 1.3 million square-meter Kiheung factory. The new fab will initially be dedicated to production of 128MB and 256MB Rambus DRAMS and its construction represents the first of several actions that Samsung said are intended to help realize 25% per annum annual LSI sales between now and 2005, when total sales should reach $4bn.
First phase construction at Line 10 is scheduled to finish by the third quarter of 2000, when Samsung will begin wafer production using a 0.15 micron design rule (claimed to be the most precise in the industry). Initial production volumes will reach 16,000 8 wafers per month, but Line 10 is expected to reach a full capacity of 32,000 wafers per month by 2001, when total investment in the plant will have reached $1.8bn.
Overall, YW Lee, president and CEO of Samsung Semiconductor Business said the company is determined to maintain a six-month to one year lead in the industry for new product development. To this end we will complete development of 0.12 micron processing technology within one year, and the 0.1 micron design rule by 2001 he said.
In parallel with its plant and process investment, Samsung will next year recruit 400 new research staff and commit $600m to R&D spending, in addition to a $2.2bn in new R&D facilities.
