[Samsung on the Rise Again] Samsung Electronics with JY's Return Launches Aggressive Semiconductor Investment

Memory Semiconductors, Continued Mid-to-Long-Term R&D and Infrastructure Investment
System Semiconductors, Early Execution of 171 Trillion KRW Investment by 2030
Establishing 'Survival' Strategies Amid Global Semiconductor War

[Asia Economy Reporter Su-yeon Woo] Marking the return of Vice Chairman Lee Jae-yong, Samsung Electronics is shifting to an aggressive investment stance in semiconductors. Amid intensifying global semiconductor hegemony battles centered on Korea, the United States, China, and Taiwan, the company has determined that proactive and aggressive investment is essential for 'survival.'

On the 24th, Samsung Electronics announced its strategy to prepare for the 'post-COVID' era, including investment plans in the semiconductor sector. In particular, Samsung set forth a policy to maintain its absolute dominance in the memory semiconductor market and to lay the foundation for a leap to become the world’s number one in system semiconductors.

To this end, the strategy is to strengthen global leadership through a two-track approach involving early development of advanced processes and proactive investment. For the memory market, the focus will be on mid- to long-term demand response rather than short-term market changes, continuing research and development (R&D) and infrastructure investment. For the system semiconductor market, the existing investment plan of 171 trillion won through 2030 will be actively executed ahead of schedule.

Specifically, in the memory semiconductor market, Samsung declared it will expand the gap in both technology and cost competitiveness, concentrating investment on developing next-generation innovative product solutions such as sub-14nm DRAM and NAND flash with over 200 layers to maintain its super-gap advantage.

In the system semiconductor sector, Samsung plans to inject massive funds of 171 trillion won to lead advanced process and innovative product development and to leap to become the global number one company. To achieve this, it will secure competitiveness by early mass production of sub-3nm products applying the new GAA (Gate All Around) technology. The system semiconductor business will expand from its existing mobile focus to new applications such as artificial intelligence (AI) and data centers, and support the creation of related ecosystems.

This expansion of Samsung’s investment reflects the rapidly changing and increasingly uncertain global semiconductor market conditions. Recently, as the United States, Taiwan, and China have strengthened their domestic supply chains and competition for technology acquisition has intensified, global semiconductor competition has evolved into a national rivalry.

The United States has established a massive $50 billion project to support semiconductor industry development, and Europe has set an ambitious goal to capture 20% of global semiconductor production share by 2030. China has committed to increasing its R&D budget for advanced industries, including semiconductors, by more than 7% annually through 2035.

Additionally, Samsung’s direct competitors, Intel in the United States and TSMC in Taiwan, have declared aggressive investment policies to expand their market shares. Consequently, there have been growing calls for Samsung to present timely investment strategies. While Samsung’s major investment decisions were delayed due to the absence of its head, the recent return of Vice Chairman Lee has led to a reassessment of investment strategies and efforts to boost growth momentum.

From the perspective of the Korean economy, aggressive investment in the semiconductor sector is an urgent task that cannot be postponed indefinitely. The semiconductor industry is effectively a safety net for the Korean economy and a core industry of the Fourth Industrial Revolution, making timely investment crucial to maintaining competitiveness. Last year, semiconductors accounted for about 20% of Korea’s exports, and 45% of domestic manufacturing facility investments were made in the semiconductor sector.

A Samsung Electronics official said, "To maintain Samsung’s global semiconductor market leadership, expanding investment is critical," adding, "Considering recent emergency situations domestically and internationally, this investment expansion strategy is essentially a survival strategy."

This content was produced with the assistance of AI translation services.