Skip to content
Subscriber Only
Tim Culpan

Samsung Refuses to Play Chicken With Capex

The memory-chip leader could have put pressure on competitors to keep up. Instead, it’s showing discipline.

Avoiding the memory hole.

Avoiding the memory hole.

Photographer: SeongJoon Cho/Bloomberg

We knew that Samsung Electronics Co. was going to reduce capex this year. It told us so.

Yet the scale of the cut is a surprise. After a record 43.4 trillion won ($38 billion) outlay last year, it would have been folly for the South Korean electronics giant to keep up the pace of spending.