By Kim Yoo-chul
LAS VEGAS ― Samsung Electronics, the world’s top tech firm by revenue, plans to increase investments by over 10 percent this year, the company’s chief executive said Tuesday.
The amount is estimated to total some $26 billion, the highest ever, and comes at a time when its competitors are struggling.
``Samsung will make landmark investments this year in facilities and the investment plan doesn’t include our spending for research and development (R&D),’’ Samsung CEO Choi Gee-sung said.
Samsung confirmed that it will increase its investment for key facilities such as memory chips and flat-screens.
In a regulatory filing to the Korea Exchange (KRX), Samsung said it had invested some 26 trillion won for facilities throughout 2011. Officials told The Korea Times that this year’s capital spending on facilities will reach at least 30 trillion won.
``Samsung is also set to invest more for R&D for 2012 as we are being asked to globalize our R&D capability,’’ Choi said in a dinner meeting with reporters held at the Las Vegas Country Club near the main venue of this year’s International Consumer Electronics Show (ICES).
Samsung Electronics is the world’s biggest maker of chips, flat-screen displays, flat-screen televisions and smartphones. It is currently supplying chips and LCDs to tech majors like Apple, Sony and Hewlett-Packard (HP).
It is seeing a recovery in consumer spending for digital devices in key markets including the United States, but is being urged to tackle currency fluctuations for sustainable and steady corporate growth.
``The global consumer electronics industry will grow less than 5 percent this year from 8 percent a year ago. Samsung has also cut our forecast for global economic growth to below 4 percent,’’ Choi said.
The Suwon, South Korea-based company has ruled out the possibility that major Japanese consumer electronics firms will come back to the market this year as the industries are seeing rapid consolidation amid the rise of Web-connected devices such as smartphones and tablets.
Samsung surpassed Finland’s Nokia in terms of revenue last year.
In smartphones, Samsung outdid Apple by total shipments since the third quarter of last year, though it is still the world’s second-biggest phone maker when including basic models.
Samsung Electronics is in a ``critical phase’’ before becoming a global leader for gadgets, Choi said.
Choi said Samsung has undeniable competiveness in hardware-related manufacturing with no problem in keeping the current lead in hardware manufacturing.
Samsung Electronics’ 2011 sales reached $148.6 billion, according to data compiled by FnGuide, a South Korea-based market research firm.
During the same period, sales of Apple reached $108.2 billion and analysts estimated sales of IBM at $107.2 billion.
Over 60 percent Samsung Electronics’ annual revenue comes from its component-related business, which is cyclical and volatile according to macro-economic moves.