Reuters

Samsung to keep up chip investment, undeterred by 8-year-low profit

South Korea’s Samsung Electronics Co Ltd on Tuesday indicated it has no plan to cut investment in chips this year, even as a weak global economy condemns the industry to its worst downturn in over a decade. The guidance bucks a broader industry trend to scale back spending and output, fanning concern that the world’s biggest memory chipmaker intends to draw on its deep pockets and superior profit margins to gain market share from smaller peers. “Samsung might be seeing this time as a good opportunity to increase market share, which should help it in the long term, at the expense of SK Hynix and Micron,” said analyst Choi Yoo-june at Shinhan Securities.

Source: finance.yahoo.com