Samsung's Capex Seen Crushing Memory Startups

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TAIPEI , Nov. 15, 2017 – Samsung, which has nearly half of the global DRAM market, is likely to crush smaller rivals after more than doubling its plan for capital expenditures in its semiconductor unit for this year, according to market analyst IC Insights.

The world's biggest chipmaker will boost 2017 capex from the $11.3 billion it spent last year to an unprecedented $26 billion.

Buoyed by strong prices for memory chips, Samsung said it sailed to a record quarterly operating income of 14.5 trillion won ($12.8 billion) in October. The outlook continues to be bullish as DRAM prices are expected to increase about 10 percent in the fourth quarter largely due to strong demand in the mobile DRAM market.

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