Samsung reduces capital expenditure by 50% in 2009

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Samsung reduces capital expenditure by 50% in 2009

Taipei (Taiwan) – DigiTimes is reporting Samsung has reduced its capital expenditures for 2009 by 50%, down to $2 billion. While this gloomy change in plans is the result of a depressed global economy, it is commensurate with fellow DRAM makers as oversupplies are seen in all channels.

Some “unnamed DRAM makers” also commented that Samsung’s capital expenditures for 2007 and 2008 were abnormally high, at $6.1 billion and $7.1 billion respectively. This adjustment, while large, may not be as large as a first glance would indicate. In fact, this may simply be the market re-aligning itself with reality.

DigiTimes. See also where Samsung will increase quotes.

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