Samsung said it will work to cement its leading position in the global memory chip market and try, at the same time, to improve its contract chip manufacturing business that lags far behind TSMC
Looking to catch up with global players ramping up their business, Samsung Electronics announced it will invest 450 trillion won ($356 billion) in the next five years to accelerate growth in semiconductors, biopharmaceutical and other next-generation technologies.
The company said it will spend 360 trillion won, or 80 percent of the investment, for research and development, and talent nurturing in South Korea, especially in advanced chipmaking.
South Korea’s top conglomerate said the investments through 2026 are expected to help Samsung drive long-term growth in strategic areas such as the chip sector, while pledging aggressive investments in the biopharmaceutical sector to make it as successful as its chip business.
In particular, Samsung said it will work to cement its leading position in the global memory chip market and try, at the same time, to improve its contract chip manufacturing business that lags far behind TSMC.
Samsung Electronics, the world’s largest memory chip maker, did not provide a breakdown of the figures, though it added that 80% of investments will be made in South Korea and that this announcement includes a 240 trillion won investment pledge made in August 2021.
The promised investment will be partly used for securing advanced chipmaking machines from, for example, ASML Holding N.V., the world’s leading photolithography equipment maker. Samsung did not include electric vehicle batteries as a future growth engine in the announcement.