By Kim Tong-hyung
Staff reporter
Lee Kun-hee is back but this time, the leader of the Samsung business empire is no longer as shy of the limelight as before. As a matter of fact, he looks comfortable in it.
His latest appearance was made during Monday's ground-breaking ceremony for a new semiconductor production line together with his only son Jae-yong, widely considered his successor-designate, and Samsung's top management. It was timed with Samsung Electronics' unveiling of massive investment plans to the tune of 26 trillion won ($23 billion).
Samsung Electronics, now the world's largest technology company, unveiled plans for a dramatic splurge to jolt its memory chip and liquid crystal display (LCD) businesses this year.
Lee appointed himself chairman of the group's flagship business two months ago when he returned to work. One year prior to his return, Lee resigned as group chairman in the middle of a major scandal. Before that, he appeared at a Samsung booth in an international electronics fair together with his three children. As a member of the International Olympic Committee (IOC) he has extensively traveled abroad to promote PyeongChang's third bid for the Winter Olympics. All these activities took place after he received a presidential pardon.
Samsung officials said Monday that its investment plans include 18 trillion won in annual capital expenditure to boost capacity for its chips and flat screens.
This represents more than double the company's previous capacity expansion plan and its largest single-year investment ever, with Samsung confident that the global consumer electronics market is improving.
"The global economy continues to be clouded by uncertainties and there could be drastic fluctuations in business conditions. But it is critical for us to increase our investment in these times and hire more talent to put us in a better position to take an early lead in global markets and contribute to the growth of the Korean economy," Lee was quoted as saying.
Samsung is the world's largest manufacturer of memory chips, LCDs and flat-screen televisions, and trails only Nokia in mobile phones.
Of the record 18 trillion won in capital spending, the company will use about 11 trillion won to improve its chip making abilities, as it attempts to exploit a market where the demand for chips is now exceeding the industry's ability to supply them. Another 5 trillion won will be used to bulk-up the company's LCD business.
Aside from the spending on facilities and equipment, the company will additionally invest 8 trillion won on research and development (R&D), Samsung officials said.
Earlier this year, Samsung had announced a spending plan of around 8.5 trillion won, including 5.5 trillion won on chips and 3 trillion won on LCDs.
The renewed investment plan was announced at the ground-breaking ceremony for the new chip line at Samsung's semiconductor facility in Hwaseong, Gyeonggi Province. The 16th line will enter operation next year, when it will be pumping out 200,000 12-inch wafers per month, company officials said. Samsung hadn't invested in a new chip line after completing its 15th in 2005.
Since returning to Samsung's management helm in March, after a two-year hiatus forced by the corruption scandal, Lee has been assertively involved in the company's decision-making process and had been promising more aggressive investment in the company's core businesses.
Samsung's renewed investment plan, which has Lee's fingerprints all over it, is certainly a headline-grabber and represents the company's aims to meet surging demand for its products and widen the gap with its smaller rivals.
Samsung, which impressively weathered the recent economic downturn, certainly has the size and wallet to beat down competitors through brute force if need be, as rival chipmakers Hynix Semiconductor and Toshiba can attest to.