Samsung mulls slashing 2009 chip investment -paper

SEOUL, Jan 5 (Reuters) - Samsung Electronics (005930.KS: Quote, Profile, Research), the world's largest maker of memory chips, is considering cutting its 2009 investment in semiconductors by more than half from last year, the Korea Times reported on Monday, citing company sources.

Samsung may invest only 2 trillion-3 trillion won ($1.5 billion-$2.3 billion) in semiconductors this year, down from 6.2 trillion won last year, the newspaper said.

Samsung declined to comment on the report.

The South Korean electronics giant said at a forum in December that capital expenditure would drop to 7 trillion-8 trillion won in 2009 from an expected 10 trillion won in 2008.

"Overcapacity, rising inventories, slumping demand and a sharp fall in chip prices are forcing the company to slash investment," an unnamed Samsung source was quoted as saying.

Memory chip makers worldwide are being forced to cut output and reduce investment as they struggle under a prolonged slump amid a deepening global downturn.

Samsung's home rival Hynix Semiconductor Inc (000660.KS: Quote, Profile, Research) received some $600 million emergency funding from its shareholders while German chip maker Qimonda QI.N also recently resorted to a 325 million euro ($452 million) loan and optional federal aid for survival. ($1=1316.5 Won) ($1=.7195 Euro) (Reporting by Rhee So-eui; Editing by Jonathan Hopfner)