Samsung Austin Semiconductor has announced plans to invest more than US$1 billion by the first half of 2017 to enhance its current system LSI production and meet growing demand for mobile SoC products.

Samsung has invested more than US$16 billion for the expansion and maintenance of its Austin fab since the establishment of the facility in 1997.

Samsung is looking to budget a record capex of over KRW27 trillion (US$23.6 billion) for 2016, the company disclosed when reporting operating profits for the third quarter of 2016 reached the lowest quarterly levels in two years. Of the 2016 capex, KRW13.2 trillion would be used for its semiconductor business.

Samsung's operating profits for the third quarter of 2016 fell about 30% from a year earlier to KRW5.2 trillion. Samsung indicated earnings generated from its mobile business decreased significantly due to the discontinuation of the Galaxy Note 7.

Samsung's IT & mobile communications (IM) division generated operating profits of KRW0.10 trillion in the third quarter of 2016, down from KRW2.40 trillion a year ago, while its semiconductor business generated KRW3.37 trillion in operating profits. "System LSI posted solid earnings on the back of 14-nanometer foundry demand and increased sales of mid-to-low end system-on-chip (SoC) and image sensors," the company indicated.