[Chipformation] Samsung C&T, Growing Alongside Semiconductors

Profitable High-Tech Construction Projects Increase ↑

As Samsung Electronics plans to establish an advanced system semiconductor cluster worth 300 trillion won in Yongin, expectations for the performance of Samsung C&T, which will be in charge of the construction, are also growing.

On the 27th, the semiconductor industry expects that Samsung C&T will take on a significant portion of the construction work required to build five semiconductor manufacturing plants on a 710㎡ site in Namsa-eup, Yongin City, with an investment of 300 trillion won by 2042. Since Samsung C&T already has experience with semiconductor production plants at Samsung Electronics’ Pyeongtaek Campus and the semiconductor plant under construction in Taylor, USA, the new plant establishment by Samsung Electronics is likely to translate into construction orders for Samsung C&T. There are even talks that Samsung C&T has secured at least 10 years’ worth of work through Samsung Electronics’ system semiconductor cluster development plan.

Samsung C&T’s establishment of a Semiconductor Infrastructure Research Institute and its preparation for increased orders due to expanded semiconductor investment are also positive factors that raise expectations for new contracts. Established in the second half of last year, this research institute focuses on key business tasks essential for semiconductor infrastructure development, including ▲research on future fab (FAB·factory) structural solutions ▲development and improvement of module construction methods in high-tech fields ▲optimization of semiconductor and display fab utility operations.

Samsung C&T can expect improved performance effects due to an increased proportion of high-tech construction projects with good profitability. As of the end of last year, Samsung C&T’s total construction contract order amount was 83.3006 trillion won. Among these, large-scale projects exceeding the trillion-won mark are related to Samsung Electronics’ semiconductor business. Construction for the third fab at the Pyeongtaek Campus amounted to 4.6701 trillion won, and construction for the first fab in Taylor, USA, was 2.4716 trillion won. The contract amount for the P4 (4th factory) new construction currently underway in Pyeongtaek also reaches 2.1676 trillion won. Samsung Electronics plans to expand the production line in Pyeongtaek up to P6, including the currently under-construction P4.

As the volume of Samsung Electronics’ semiconductor plant projects increases, Samsung C&T’s construction division sales rose about 33% year-on-year to 14.5982 trillion won last year. Operating profit recorded 875 billion won, an increase of 249%, marking the highest performance since the company’s founding. Semiconductor-related construction orders continue this year as well. In the first quarter, Samsung C&T secured orders worth 1.76 trillion won for the Pyeongtaek P4 finishing work and 1.265 trillion won for the Pyeongtaek P3 finishing work. The market expects Samsung C&T’s construction division sales to exceed 15 trillion won this year, offsetting the performance declines in other business divisions, including trading.

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