UPDATE 1-Samsung exec plays down euro zone impact on chips

* Q2 chip results better than Q1-exec

* No euro zone impact seen on chip market yet

* Shares up 2.3 pct vs KOSPI’s 0.3 pct rise

(Adds details)

SEOUL, May 27 (BestGrowthStock) – Samsung Electronics (005930.KS: ),
the world’s largest memory chip maker, sees little impact from
the continuing euro zone problems on the global memory chip
market, the head of its semiconductor division said on Thursday.

The South Korean firm, which reported record quarterly
results last quarter on robust sales of chips and flat screens,
expects results from its chip division to further improve in the
current quarter, the executive said.

Chip prices are holding up well as strong sales of computers
and slow production growth by rivals following years of
underinvestment keep supplies tight.

“Usually the third and fourth quarters are the industry’s
peak and I don’t see any impact from the euro zone crisis on the
semiconductor market yet,” Kwon Oh-hyun, the president of
Samsung’s semiconductor business, told reporters on the sidelines
of a business forum.

“The market will remain tight at least until the end of this
year,” he said.

Samsung, which recently doubled its planned capital spending
on semiconductors to 11 trillion won for this year to widen its
technology gap with rivals, is set to report 4.5 trillion won in
consolidated second quarter operating profit, according to
Thomson Reuters I/B/E/S. [ID:nTOE64F015]

The company, which is also the world’s top maker of LCD flat
screen and No.2 mobile phone maker, competes with local rival
Hynix Semiconductor (000660.KS: ) and Japan’s Elpida (6665.T: ) in
memory chips.

By 0100 GMT, shares in Samsung rose 2.3 percent to 767,000
won, versus a 0.3 percent gain in the KOSPI (.KS11: ).

Stocks

(Reporting by Miyoung Kim; Editing by Jonathan Hopfner)

UPDATE 1-Samsung exec plays down euro zone impact on chips