Samsung Elec chairman orders new chip line

SEOUL, SOUTH KOREA:  Samsung Electronics Co Ltd said on Monday it has yet to decide whether to expand investment in memory chips after a newspaper reported that its group chairman told the company to do so.

Samsung, which has said it would seriously consider increasing its 5.5 trillion won capital spending on memory chips this year, said no decision has been made yet, but stronger than expected computer sales and demand from China have led investors to increase their bets on a spending boost.

"Nothing has been decided yet and we'll keep investment flexible," a Samsung spokeswoman said.

The Maeil Business Newspaper reported on Monday, citing industry sources, that Lee Kun-hee, who returned as chairman of Samsung Electronics last month, ordered the group to add a new chip line. Samsung will hold a groundbreaking ceremony for the new line next month, the report said.

Lee, 68, had kept his influence over the group as the head of its founding family but his return with an official title will give the conglomerate clearer direction and speed up big management decisions, analysts and fund managers have said. As the chip sector recovers quickly from its worst-ever downturn over the past three years, companies are gearing up to increase investment, although so far spending has mainly focused on moving to finer processing technology to cut costs.

Shares in Samsung, the world's biggest electronics firm by revenue, were up 0.93 percent in morning dealings in line with gains in the broader market

The company, due to report its first-quarter earnings guidance this week, said last month it was aiming for record revenues and operating profit this year.