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Last Updated: Thursday, 29 September 2005, 10:15 GMT 11:15 UK
Samsung plans biggest chip plant
Samsung plant
Samsung is going to add new lines at two of its plants near Seoul
Samsung Electronics, the South Korean chipmaker, is planning to spend $33bn (19bn) expanding output and building a research and development plant by 2012.

The company said it would create 14,000 new jobs and add 5,000 research posts over the next seven years, creating the world's biggest semiconductor factory.

Samsung said the extra output would boost chip sales to $61bn (35b) in 2012, compared with $16.3bn last year.

Samsung has been battling declining prices and waning demand.

The company sells two main types of memory chip: DRAM chips for computers and flash memory chips for digital cameras and mobile phones.

'World's largest'

Despite industry-wide oversupply, Samsung said that building eight production lines at two factories was a key part of plans to boost future profits.

"The long-term investment plan reflects Samsung's strong commitment to supporting leading-edge technologies that will create new markets and applications," it said.

The lines would be added to Samsung's Kiheung and Hwaseong factories near Seoul.

Samsung logo and mobile phones
Products such as mobile phones and TV has been driving sales

"When completed in 2012, the Kiheung-Hwaseong complex will be the world's largest semiconductor fabrication facility," Samsung said.

As well as chips, Samsung also makes flat-screen televisions, mobile phones and computers.

Increased demand for these products has helped take up the slack in chip revenues and the company is predicting that chip sales will have picked up in the second half of this year.

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