[Click eStock] KB Securities "The Background of Samsung Electronics' 300 Trillion Investment..."

KB Securities evaluated Samsung Electronics' decision to invest 300 trillion KRW in system semiconductors in Yongin as "the best choice for domestic investment" and stated that it is "positive for strengthening the competitiveness of Samsung's foundry and the materials, parts, and equipment (MPE) supply chain."

In a report on Samsung Electronics dated the 16th, KB Securities cited the reasons behind Samsung Electronics' plan to build the world's largest system semiconductor complex in Yongin as follows: ▲ Establishing a large-scale complex to expand foundry production capacity in competition with TSMC for market share ▲ Proximity of 10 to 15 minutes to Samsung Electronics' semiconductor research and development (R&D) center, expecting future R&D synergy ▲ Site selection to avoid geopolitical risks from the US and China ▲ Advantages of the metropolitan area for cooperation with existing MPE companies and attracting excellent talent.

KB Securities explained, "Samsung Electronics' investment decision in Yongin is expected to have a positive impact by strengthening Samsung's foundry mid- to long-term competitiveness," adding, "As of Q4 2022, Samsung Electronics' foundry market share is only one-quarter of TSMC's, and its capital expenditure scale is only one-third, making production capacity expansion urgent."

Furthermore, they forecasted, "Through this investment, Samsung Electronics will also positively impact the strengthening of the MPE supply chain's competitiveness by expanding cooperation and R&D with existing MPE companies."

KB Securities maintains Samsung Electronics as its 'Top pick' in the semiconductor sector and presented Wonik IPS, Hanmi Semiconductor, Doosan Testna, SFA Semiconductor, Ligno Industrial, Soulbrain, and Dongjin Semichem as notable stocks in the system semiconductor MPE category.

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