Samsung Electronics announced that the company plans a massive increase in its spending over the next five years aiming to become frontrunners in semiconductors, biologics, artificial intelligence, and other next-generation technologies. In particular, the corporate giant – whose Samsung Electronics Co. group and Samsung Biologics Co. group dominate South Korea’s economy – committed to 450 trillion won (around $356 billion) in investments by 2026, which amounts to a 36% increase over its investments from the past five years. Such an investment, according to the company, will create 80,000 new jobs “primarily in core businesses, including semiconductors and biopharmaceuticals.”
According to a statement from Samsung, the 5-year investment plan would bring “long-term growth in strategic businesses and help strengthen the global industrial ecosystem of crucial technology.” Although Samsung Electronics did not give a breakdown of the numbers, it stated the majority of the investments would be made in South Korea. Specifically, the company plans to make use of 80% of the investments (360 trillion won) in Research and Development (R&D) and talent nurturing in South Korea, especially in advanced chipmaking, whereas the remaining funds will be invested overseas. Being the world’s largest memory chip maker, the tech giant noted that this investment would “bring forward the mass production of chips based on the 3-nanometer process,” the technology by which the semiconductors can shrink down in size and the computing power be enhanced. Likewise, the Samsung group will also invest heavily in the biopharmaceuticals sector as well, with the aim to make it as thriving as its chip business is. In their announcement, Samsung stated that securing domestic chip and bio supply chains has both a strategic and economic importance for South Korea.
Samsung’s investment announcement comes just a few days after US President Joe Biden visited the company’s Pyeongtaek semiconductor factory – the largest chip facility in the world – on his inaugural trip to Asia. According to Biden, the two countries need to work to “keep our supply chains resilient, reliable, and secure,” and that the semiconductors manufactured in the Pyeongtaek factory are “a wonder of innovation”.
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