San Fransisco, May 03: Samsung Electronics Co. Ltd. on Friday said it was spending $500 million to expand and upgrade its semiconductor plant in Austin, Texas, to make advanced computer memory chips used in high-end servers. Samsung's expansion comes at a time when other chipmakers have been cutting back on spending, including the world's biggest chip company, Intel Corp., which has said it plans to cut its 2003 capital spending budget by as much as 25 per cent.

The chip industry is in an extended downturn, its worst ever, as corporate spending and computer upgrades are being delayed amid an overall economic slump.
Samsung's Austin plant currently produces 128 megabit and 256 megabit DRAM (dynamic random access memory) chips used in personal computers and servers.
After the expansion, the plant will produce state-of-the-art nanotechnology semiconductors, including 1-gigabit memory chips used in high-end servers. Bureau Report