Samsung Electronics Co's board of directors approved the spending of 3.94 trillion won (3.34 billion dollars) this year, the South Korean firm said in a report to the Korean Stock Exchange.

The new investment breaks down into 2.74 trillion won for its new liquid crystal display (LCD) flat TV screen business and 1.2 trillion for expanding its memory chip production lines, it said.

Samsung Electronics said the investment plan aims to meet the fast-growing demand for LCD panels and to retain its leadership in the memory chip industry.

In October last year, Samsung Electronics and Japan's Sony Corp., the world's leading TV manufacturer, agreed to launch a 50-50 joint venture in South Korea in the first quarter of 2004.

The joint venture will produce large, seventh-generation LCD panels, with Samsung aiming to secure a 40 percent share of the LCD market for televisions.

Major LCD makers have been increasing capacity to meet booming demand for flat-screen televisions and computer monitors as the traditional cathode ray tube screens are dropped.

SPACE.WIRE