Samsung Electronics has announced plans to invest $39.8 billion in facility upgrades this year, despite a drop in earnings. This investment is expected to be the company’s largest-ever annual investment plan. The majority of the funds, $33.4 billion, will go towards the company’s semiconductor business, while $2.2 billion will be allocated to its display panel affiliate, Samsung Display Corp. In the third quarter alone, Samsung spent $9.9 billion on capital expenditure. The company stated that the investment will be focused on memory, particularly in Pyeongtaek, and on expanding capacity for flexible displays and OLED products for IT applications. Samsung reported a decline in its memory chip business in the third quarter but saw better-than-expected profits in its mobile and display divisions. The company is optimistic about the October-December period, expecting solid profitability and a recovery in the chip sector. Samsung’s chip division has marked losses for the third consecutive quarter, while its device experience division achieved an operating profit of $3.1 billion and its display business earned an operating profit of $1.7 billion. The company’s subsidiary, Harman, also posted record profits for the July-September period.
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