Samsung Electronics to expand chip output

Samsung Electronics plans to build two semiconductor production lines by the end of 2003 with an investment of 3.84 trillion won.

The company announced on Septembe 6 its long-term vision to become the world`s leader in semiconductors and thin-film-transistor-liquid-crystal displays, noting that it will add production lines for that product, as well.

The new chip production lines will comprise two memory chip lines, which includes one 12-inch wafer production line, and a system LSI line.

Initially, Samsung will focus on next-generation memory chips such as D-RAM, Rambus D-RAM and flash memory chips, which are in short supply, running 10 production lines at its Hwasung electronics complex. Also, 11 lines will be built at Hwasung complex No. 2 for the production of 8-inch DRAM chips.

The facilities, which are expected to begin output in the second half of 2001, include a 300-millimeter wafer processing line. Samsung has decided to build one of the memory chip production lines for processing of 12-inch wafers.

Analysts say that the Samsung plan is intended to consolidate its position as the world`s No.1 maker of memory chips by outplaying its global competitors such as Micron and Hyundai Electronics Industries.

Lee Hoon dreamland@donga.com