With HDTV sales exploding as usual, mobile phone displays more important than ever, and memory chips finding their way into more devices every day, Samsung Electronics is set to announce its biggest investment project in the history of the company.
According to the Korea Times, Korean-based Samsung Electronics will unveil a plan to invest about 20 trillion won ($17.7 billion) into new research and product development. That's a huge amount for one single investment plan.
Samsung is in the sweet spot on consumer electronics right now. Every major division of its company is booming, and it is at or near the top of every single one of them. Its flat-panel TV sales trump every other manufacturer and its mobile phone business in second place globally, behind Nokia.
The previous biggest investment was 14 trillion won, when Samsung overhauled its facilities in 2008. "This year's investment would set a new record," the Times quoted a company spokesperson as saying. The announcement shows huge momentum for Samsung, as it had previously projected a scant 8.5 trillion won investment allocation for all of 2010.
But growth at the company has highly exceeded expectations. In the first quarter, it reported its highest profit ever, mostly attributed to a booming chip business, but with TV and LCD displays boosting it significantly.
Much of the investment money would be spent on developing new LCD and memory chip technologies. Update: Samsung raises Investment Sum.