S. Korean chipmakers to spend big on infrastructure

SEOUL, Oct. 29 (Yonhap) -- South Korean chipmakers will likely invest 22 trillion
won (US$18.3 billion) by 2012 to update their manufacturing infrastructure and
strengthen their global market presence, a trade association said Thursday.
The Korea Semiconductor Industry Association (KSIA) said members like Samsung
Electronics Co. and Hynix Semiconductor Inc. plan to increase investments
starting in 2010, with up to 7 trillion won earmarked for use in the first year.
The semiconductor industry experienced two years of negative global growth that
dampened investment sentiments, but a recent rise in memory chip prices and
predictions of better times have caused many companies to consider expansion, the
umbrella business group said.
Echoing this view, Kwon Oh-hyun Kwon, president of semiconductor business at
Samsung, claimed that the worldwide market for chips is expected to rise 11
percent annually after this year on greater demand for personnel computers,
mobile phones and other electronic devices.
South Korea led by Samsung and Hynix currently dominate the global memory
semiconductor market with efforts underway to gain control of the market for more
value-added products like system chips.
System chips refer to communication and image processing chips used on mobile
phones and digital cameras and central processing units.
Related to the country's goal to further control the chip market, Knowledge
Economy Minister Choi Kyoung-hwan said every effort must be made to boost
competitiveness that has been a leading growth and export engine.
He said planned investment by chipmakers will help the national economy as it
tries to make a comeback from the global financial crisis triggered by the
collapse of Lehman Brothers last year.
The official said that besides memory chips, Seoul is committed to helping
companies expand their market presence in system chips and in the semiconductor
manufacturing machinery and component sectors.
yonngong@yna.co.kr
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