Samsung Electronics President Kyung Kye-hyun Visits the US... Personally Oversees Clients and Foundry Operations

Visiting the US for One Day Early This Month
Focus on Proactive Response Amid Global Supply Chain Crisis

[Asia Economy Reporter Kim Jin-ho] It has been confirmed belatedly that Kyung Kye-hyun, President overseeing Samsung Electronics' semiconductor business, embarked on a business trip to the United States earlier this month. President Kyung personally checked the preparation status of the new foundry (semiconductor contract manufacturing) line scheduled to begin construction in the first half of the year, including meetings with clients. Considering the intensifying aggressive investment competition in the semiconductor industry and the global supply chain crisis, this move is interpreted as significant.

According to business circles on the 28th, President Kyung went to the U.S. earlier this month amid aggressive investment moves by semiconductor competitors. Although the schedule was short for client meetings, he is reported to have directly overseen the preparation status of the new foundry line in the U.S., scheduled to begin construction in the first half of the year. The Samsung Electronics foundry line to be newly established in Taylor, Texas, is evaluated as a key "forward base" aiming to be the number one in the system semiconductor industry by 2030.

Samsung Electronics has decided to invest $17 billion (approximately 20 trillion KRW), the largest scale ever by U.S. standards, for this purpose. The new line will apply advanced foundry processes to produce cutting-edge system semiconductors in various fields such as 5G, high-performance computing (HPC), and artificial intelligence (AI).

President Kyung's U.S. trip took place as Samsung Electronics, aiming to complete the Taylor city foundry plant by 2024, is striving to expand its U.S. network. Alongside the Biden administration's "America First" policy, domestic companies including Samsung Electronics are raising their diplomatic response capabilities. Previously, Samsung Electronics North America appointed Mark Lippert, former U.S. Ambassador to South Korea, as head of external cooperation and vice president at headquarters to oversee protocol affairs in this context.

Especially since the U.S. announced semiconductor export sanctions against Russia following its invasion of Ukraine, Samsung Electronics urgently needs close communication with the U.S. Samsung must obtain U.S. approval for semiconductor exports under these sanctions. Because most semiconductor production, a core component of all electronic devices, involves U.S. software or technology, semiconductor products produced by Samsung Electronics and SK Hynix are inevitably affected.

Industry watchers are also paying attention to whether Samsung Electronics' M&A strategy, which stalled after acquiring U.S. automotive parts company Harman in 2017, will materialize following President Kyung's recent trip. As the semiconductor industry has aggressively expanded and reorganized in recent years, there is a prevailing view that Samsung Electronics will soon undertake significant M&A moves to maintain its leading position.

Intel, which recently declared re-entry into the foundry business, announced plans to invest up to $100 billion (approximately 120 trillion KRW) in mega-fab construction. TSMC also declared it would make its largest-ever investment of $44 billion (approximately 52 trillion KRW) this year.

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