Reuters is reporting that Samsung Electronics will cut its semiconductor investment in 2009 to half of its 2008 investment, citing The Korea Times. In 2009, Samsung may only earmark 2 trillion to 3 trillion won ($1.5 billion to $2.3 billion American) for semiconductor investment compared to 6.2 trillion won ($4.75 billion American).
As consumer spending has fallen over the last year, Reuters cites Samsung sources as saying,
“Overcapacity, rising inventories, slumping demand and a sharp fall in chip prices are forcing the company to slash investment.”
Makes sense–just basic supply and demand. At CES later this week I’m guessing we won’t see as many chipmakers exhibiting compared to previous years. Unless companies are in the gaming or 3D TV sectors, it would be nothing more than a waste of money.
(Image Credit: Samsung)
