updated 05:00 am EST, Tue January 17, 2012
Samsung Group plans huge expansion for 2012
Korea’s Samsung Group, which is comprised of 80 companies including Samsung Electronics, plans to expend a massive $41.4 billion in capital investment for 2012, according to Reuters. This includes a planned $1 billion expansion of its Austin chip fabrication plant, but is also expected that a significant chunk of the new round of capital investment will be in logic chips and the next-generation of OLED flat-screen displays. By comparison, the combined capital investment of Japanese tech heavyweights Sony, Toshiba and Hitachi is expected to total just $16.6 billion.
Samsung’s expected investment in OLED display technology is likely to yield significant dividends. Samsung already has a near monopolistic position on the supply of OLED panels for mobile devices and it is expected that it will likely repeat its success in global OLED flat-panel market set to exceed $20 billion by 2018. It is projected that by this time OLED displays will comprise 16 percent of the total display market, up from just 4 percent currently.
Additional capital is also expected to be directed towards the development and expansion of research facilities, building new factories as well as mergers, acquisitions and hiring. The company also plans to invest heavily in human resources over the next 12 months, as it looks to add a record 26,000 new employees up from 25,000 additions in 2011. Samsung currently employs 350,000 staff world-wide.