Samsung invests 14.7 billion dollars to build chip factory in South Korea

Beijing Time October 6 Evening News, Samsung Electronics announced today, will invest 15.6 trillion won (about 14.7 billion U.S. dollars) in South Korea to build a chip manufacturing plant. The new plant will start next year at the Seoul Industrial Park (Pyeongtaek) in southern south of the city, which is expected to begin production in 2017. That would be the largest Samsung investment in a single plant so far. Samsung said the new plant would offer 150,000 jobs, equivalent to 1/3 of the city's population. "The investment in the new semiconductor plant will play a crucial role in Samsung's future chip business," Oh-hyun Kwon, Samsung Electronics CEO Bang, said in a statement. Samsung is now investing more in the smartphone business, which faces severe challenges from Apple (99.62, 0.00, 0%) and millet. Samsung will release its third-quarter results later this week, and analysts expect operating profit to fall 47% per cent and revenues to fall by 15%, the biggest drop since 2009. "Semiconductors have been the core business of Samsung for a long time," said Lee Min-hee, an analyst at Seoul im Investment and securities company Li Minxi. The handset business, by contrast, is weakening. Samsung is investing aggressively to ensure future growth, because the handset business is unlikely to make as much profit as it has in the past.