Asian chip makers open their wallets

Asia's semiconductor manufacturers, led by South Korea's Samsung, are predicted to be among the biggest capital spenders this year. 

Samsung, which makes DRam and Flash memory chips, as well as LCD panels, will spend $6.74bn in 2007, more than any other firm, predicts research firm IC Insights. 

If the predictions are correct, Samsung's spending in 2007 will be a slight decrease from the $6.84bn in 2006.

Local rival memory chip maker Hynix will spend $4.53bn, IC Insights predicts, giving it third place in the world rankings behind Intel. 

However, Taiwanese memory chip maker Nanya Technology is expected to show the biggest increase in spending this year. Nanya's capital spending is expected to almost triple, leaping 168 per cent from $910m last year to $2.43bn this year.

Combined spending from Taiwanese manufacturers is expected to rise 16 per cent this year. This is especially impressive after these companies logged a 37 per cent increase in 2006, IC Insight's researchers commented.

Outside Taiwan, spending in most regions is falling or remaining flat, although expenditure at smaller manufacturers in China and Singapore is on the increase.

IC Insight's list of the biggest capital spenders in the semiconductor industry consists of 15 from Asia (including Japan), seven from the US and three from Europe.

Samsung's predicted spending of $6.74bn is 12 per cent of total industry capital expenditure.

In related news, Samsung is expected to open an advanced eighth-generation LCD panel production facility next month, two months ahead of schedule.