Samsung to build $1.9 bln logic chip line

Samsung Electronics Co(005930.KS), the world's No.2 chipmaker, said it will spend $1.9 billion to build a new logic chip line to make processors for mobile devices as demand grows for smartphones and tablets.

Samsung, which makes application processors for Apple's (AAPL.O) iPhone and iPad - which rival its own Galaxy and Note devices - said the new line will use 300 mm wafers and 20 nanometer and 14 nanometer processing technology.

The South Korean firm is aggressively pumping up production of logic chips, as growth in the mobile device market outpaces weak computer sales. Demand for system chips used in smartphones and tablets is set to more than double to $59 billion in 2016 from $23 billion last year, according to research firm Gartner.

In a statement, Samsung said the new line - which it hopes to complete by the end of next year - would help meet growing demand for "smart mobile solutions".

The investment plan follows Samsung's recent decision to build its first chip manufacturing plant in China to make NAND type flash memory chips, which analysts estimate will cost some 4-5 trillion won.

Ahead of the announcement, shares in Asia's biggest technology firm closed up 5.2 percent in a broad market rally that sent the benchmark KOSPI index up 2.6 percent.

Samsung Galaxy S3 hits store shelves in India

Samsung Electronics launched its flagship Galaxy S3 smartphone in India on Thursday, making an aggressive push to counter Apple's popular iPhones in a competitive market.

The 16 GB smartphone, priced at 43,180 rupees in India, runs on the Android 4.0 platform and features a 4.8 inch screen.

The Galaxy S3, powered by Samsung's quad-core microprocessor, also tracks the user's eye movements to keep the screen from dimming or turning off while in use.

Samsung packs new features such as the S Voice, its equivalent of Apple's Siri, and launched its own music service on the device. The S3 also boasts of an 8 megapixel rear camera.

"India is one of the top three strategic markets in the world for Samsung," a company release quoted H.C. Ryu, Samsung's vice president of sales and marketing, as saying at the phone's launch in India.

The company is aiming to outsell its previous model S2 that helped the South Korean firm topple Apple as the world's largest smartphone maker.