Samsung to slash chip capex by 20 percent in 2016

Posted on Friday, Sep 25 2015 @ 15:46 CEST by Thomas De Maesschalck
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Word is going around that Samsung has decided to cut its 2016 chip investment plans by 20 percent to prevent further falls in chip prices. Korea Times notes most of the capital expenditure (capex) cuts will focus on DRAM chips and that Samsung has shifted its goal from expanding volume to gaining more profits.
Most of its spending cuts will be focused on DRAM memory chips, sources who are directly involved with the matter told The Korea Times, Thursday.

"Samsung has no plans to build new chip factories next year. The company's top priority next year is to gain more profits rather than expand volume," one source said.

Its spending on memory chips may fall below 8 trillion won from this year's estimated 10 trillion won, he said.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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