business‎ > ‎

Samsung to spend $38 billion in 2011

posted 5 Jan 2011, 05:19 by Sam Mbale   [ updated 5 Jan 2011, 05:21 ]
Samsung Electronics' parent, Samsung, will invest 18 percent more this year, bringing capital outlay to a record $38 billion. Samsung says outlays for new businesses and maintaining market leadership.
ASIA-COMPANYASIA - The parent company of Samsung Electronics, the Samsung Group, is boosting investment by nearly 20 percent to a record $38 billion this year.

South Korea's largest business group, says the outlays will help it build new businesses, while maintaining its lead in various technology sectors.

Samsung has nearly 70 member companies, in sectors ranging from chips and ships, to flat panels and

mobile phones.

The group's investment plan is significantly higher than some Japanese manufacturers as well as local rival LG Group.

LG is planning $18 billion in investment this year, mostly on its key electronics businesses, including smartphones, tablet computers and new flat panel technology.

Samsung has a similar strategy, stepping up spending the most on the next generation OLED display business. Outlays for the unit will rise nearly four times to $5 billion.

Organic light-emitting diode (OLED) screens are lighter, produce pictures that are brighter, and because they do not use backlights like LCDs, are more energy-efficient.

Flagship Samsung Electronics and other handset makers already use OLED displays in their mobile phones, but they becoming more common in notebook screens and TVs.

Samsung also signalled its intent to retain its leading status in LCD displays and TVs, pouring another $5 billion into this segment of the flat panel business.

Samsung's chipmaking operations will see a slight fall in capital outlay, down about 14 percent to $9 billion.

Samsung Electronics is the world's top maker of memory chips, flat screens and flat screen TVs, and the second biggest maker of mobile phones.

Its tablet computer, the Galaxy Tab, has also enjoyed early success against Apple's iPad in what is seen as one of the fastest growing segments in consumer technology.

The group has combined annual sales of more than $190 billion, about one-fifth of South Korea's annual GDP.

Arnold Gay, Reuters