Samsung seen raising chip investment in H2 -paper

SEOUL, July 17 Thu Jul 16, 2009 10:15pm EDT

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SEOUL, July 17 (Reuters) - Samsung Electronics (005930.KS), the world's largest memory chipmaker, is expected to invest at least 1 trillion won ($790 million) in a semiconductor production facility in the second half, a newspaper reported on Friday.

Electronics industry paper ETnews said Samsung spent about 800 billion won in capital expenditure for the chip business in the second half, without specifying sources.

Kwon Oh-hyun, president of Samsung's semiconductor division, said at an industry event on Thursday that Samsung expected its investment in the second half to rise "slightly" from the first half.

The company has repeatedly declined to disclose the size of capital investments planned for this year or already made so far.

ETnews said the chip division investment in the second half would focus on introducing more advanced production technology, such as 40-nanometre circuitry for DRAM (dynamic random access memory) chips and 30-nanometre for NAND flash memory.

However, Samsung would be more cautious in capacity expansion as the memory chip industry was not yet completely out of the woods despite recent signs of improvement, ETnews quoted Kwon as saying.

Kwon said Samsung's chip business would record a profit in the second quarter, confirming widespread market expectations, but he declined to disclose figures, the paper added. (Reporting by Rhee So-eui; Editing by Chris Lewis)

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