Samsung Electronics Capital Expenditure to Reach Approximately KRW 46.2 Trillion in 2017

Samsung expects capital expenditure (Capex) for 2017 to be approximately KRW 46.2 trillion, a significant increase from 2016. Capex for the semiconductor and display businesses will be KRW 29.5 trillion and KRW 14.1 trillion, respectively.

In the third quarter, the company invested KRW 10.4 trillion, including KRW 7.2 trillion for the semiconductor business and KRW 2.7 trillion for the display segment. This brings the cumulative capital expenditure to KRW 32.9 trillion, as of the end of the third quarter.

In the Memory Business, investments are mainly focused on:

• the Pyeongtaek fab to expand capacity to address rising demand for V-NAND;
• DRAM process migration; and
• supplementing any capacity loss resulting from the migration.

For the foundry business, Samsung is increasing its 10nm capacity to address rising demand for cutting-edge process technology. For the OLED business, Samsung has been concentrating its investments on expanding capacity for flexible panels to respond to growing demand.

In the fourth quarter, a substantial portion of the investments will be made in the semiconductor business to build infrastructure related to new sites and clean-rooms.