Memory chip vendors Samsung Electronics and SK Hynix have both taken a cautious approach to planning for capital expenditure (capex) in 2013, implying that the pair is looking to maintain stable profits instead of pursuing bigger maret share, according to industry observers.
Samsung's capex for its semiconductor business in 2012 is estimated at about US$13 billion, and its spending will likely reduce to US$12 billion in 2013, the observers said.
Fellow memory chip firm Hynix is expected to lower its capex in 2013, the observers indicated. Hynix' capex for 2012 is estimated at approximately KRW3.8 trillion (US$3.5 billion).
Samsung's semiconductor business consists of the memory and system LSI divisions. The vendor also manufactures display panels, and system products such as smartphones and TVs.
Samsung has disclosed that its capital spending for 2013 will be similar to that allocated for 2012. "The weakening global economic recovery and looming market uncertainties are anticipated to weigh on plans for investment and performance this year," the company said in a statement.
Hynix has not disclosed its capex plan for 2013.
In other news, Samsung and Hynix have both moved to shift their DRAM business focus to chips used in mobile devices from commodity chips for PCs.
Samsung indicated that rising sales of mobile DRAM, which yields higher profits, will make a positive contribution to its overall DRAM business growth in 2013.
According to Hynix, sales of mobile DRAM chips accounted for 40% of its overall DRAM revenues in the fourth quarter of 2012. The proportion is set to climb further in 2013.