Memory price dynamics regularly allow Samsung Electronics to challenge the title of the largest chip supplier in the fight against Intel, but to stay at the top of the rankings, the Korean giant must invest in its own development. By 2026, $356 billion will be allocated to priority business areas, and electronics manufacturing is one of them.
As Reuters explains, in August 2021, immediately after the release from prison of Vice President and formal heir to the Samsung empire, Lee Jae-yong, the company’s management announced its intention to invest about $ 190 billion in its own development. Now the goals have been clarified : The investment horizon is set to 2026 inclusive, for a five-year period, and the amount is increased to $ 356 billion. In general, Samsung’s capital investments for the next five years should be 30% higher than in the previous one.
However, Samsung’s semiconductor business will get only a fraction of this amount, the company considers biopharmacological technologies to be the second most important area of investment. Over time, according to Samsung, this business area will become as successful for the company as semiconductors. Interestingly, the production of traction batteries for vehicles was not among the priority areas for investment.
It is noteworthy that about 80% of capital investments will be spent on the territory of South Korea, although this does not mean the abandonment of investments outside the country. In the US, for example, Samsung Electronics is looking to build a second semiconductor contract manufacturing facility for about $17 billion.
In the semiconductor business, Samsung Electronics will focus on third-party memory chips and chips, using cutting-edge technologies and materials that it will develop in-house. Special attention will also be paid to new layout solutions, which should allow combining computing components and memory chips in one package.
Among the promising areas of business worthy of serious investment, Samsung includes artificial intelligence technologies and next-generation communication networks. By 2026, the Korean conglomerate expects to create about 80 thousand new jobs, mainly in the semiconductor and biopharmaceutical sectors. Funding will be allocated for collaboration with academic institutions and targeted student learning. Promising young companies will be able to count on Samsung’s support through venture investment mechanisms.
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