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Samsung Elec, SK Hynix to up 11%, 16% in capex spending this year

Collected: 2017.03.08

Distributed: 2017.03.09

Source: Go Direct

South Korean memory chipmakers Samsung Electronics Co. and SK Hynix Inc. that are the world’s largest two players in the dynamic random access memory (DRAM) market will up capital investment by 11 percent and 16 percent, respectively this year, buoyed by recovery in prices of mainstream memory and heated demand for next-generation memory to power high-performance computing and mobile devices, according to global market data provider IC Insights.

Samsung Electronics will top in the capex rank with estimated spending of $12.5 billion, up 11 percent from last year. SK Hynix pledged $6 billion to ramp up capacity to meet burgeoning demand in 3D non-volatile storage (NAND) flash. They had cut spending by 13 percent and 14 percent, respectively, last year on weak DRAM market that ended up in a supply shortage and jump in DRAM prices toward the end of the year.

SK Hynix has already approved a budget for 7 trillion won spending largely to expand cleanroom space at the M14 fab in Icheon, Gyeonggi Province.

The world’s largest memory chipmaker is yet to announce its spending plans for this year. Samsung Electronics is building the world’s largest chipmaking compound in Pyeongtaek, south of Seoul. From latter half, the facility would turn out NAND flash.

By Lee Dong-in

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