Samsung Capital Expenditure to Reach Approximately KRW 46.2 trillion (R4,9 trillion) in 2017

Foundry Business to be Expanded

JOHANNESBURG, South Africa – Samsung expects capital expenditure (Capex) for 2017 to be approximately KRW46,2 trillion (R4,9 trillion), a significant increase from 2016. Capex for the semiconductor and display businesses will be KRW29.5 trillion) R3,1 trillion and KRW14,1 trillion (R1,5 trillion), respectively.

In the third quarter, the company invested KRW10,4 trillion (R1 trillion), including KRW7,2 trillion (R758 billion) for the semiconductor business and KRW2,7 trillion (R292,7 billion) for the display segment. This brings the cumulative capital expenditure to KRW32,9 trillion (R3,5 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 investment will be made in the semiconductor business to build infrastructure related to new sites and clean-rooms.