Samsung to increase spending 120% on chips

[THE INVESTOR] Global top semiconductor companies will increase their capital expenditure in the second half of 2016 amid stiffer competition with Chinese rivals.

According to market research firm IC Insights, Korea’sSamsung Electronics is expected to increase its capex to US$7.6 trillion in the latter half of the year, up 120 percent compared to the first half.

TSMC of Taiwan is anticipated to invest around $6.6 billion in capex, up 92 percent from the first half while Intel of the US will likely increase its capex 61 percent to US$5.9 billion.

Intel and Samsung, which are ruling the global memory and non-memory sectors, took the first and second spots, respectively, in the world’s chip market by posting US$51.4 billion and US$40.1 billion in revenue in 2015.

TSMC, a major supplier of Apple’s mobile application processors, came third by posting US$26.8 billion in revenue.

The US and Korean chipmakers will likely go full throttle to lead the sector for vertical NAND flash memory, which stacks cells vertically inside while the Taiwan-headquartered firm is said to beef up its production capacity for mobile AP, anticipated to be fitted in Apple’s next flagship smartphone, iPhone 8.

By Kim Young-won (wone0102@heraldcorp.com)