Samsung to invest $151 billion in system semiconductors

Samsung's plan is part of the K-Semiconductor Belt Strategy

Samsung Electronics’ semiconductor plant in Pyeongtaek, Gyeonggi Province, is pictured.

Samsung Electronics announced during an event Thursday that it plans to increase its total investment in system semiconductors through 2030 to 171 trillion won (US$151.53 billion). Samsung’s plan is part of the K-Semiconductor Belt Strategy, a public-private initiative that the South Korean government unveiled in the event held at Samsung’s Pyeongtaek plant.

The sum announced by Samsung is 38 trillion won (US$33.72 billion) greater than the original investment (133 trillion won, US$118.03 billion) that Samsung had pledged as part of its 2030 system semiconductor vision back in April 2019.

Samsung promised to use the investment to spur research and development into advanced foundry processes and the construction of more production lines.

Samsung Electronics added that it will take the lead in incorporating extreme ultraviolet technology into its next-generation dynamic random access memory (DRAM) chips. It will also work to develop the technology for future memory solutions, such as HBM-PIM, which integrates memory and system chips, and CXL DRAM, which seeks to overcome DRAM’s space limitations.

“Other countries are in sharp pursuit of South Korea even in the memory sector, where it has hitherto maintained a lead. Rather than trying to defend our position, we mean to take the initiative in preemptive investments aimed at opening up an insurmountable lead,” said Kim Ki-nam, co-vice chairman at Samsung Electronics.

Samsung Electronics promised to expand activities aimed at benefiting all members of the system semiconductor ecosystem. Those activities include the reciprocal sharing of fabless application processors, helping companies produce test products, and providing technical training to its suppliers. It also agreed to increase cooperation with academia to train workers and materials, parts, and equipment manufacturers.

Samsung explained that these efforts will add value by upgrading the overall technological level of the system semiconductor industry as more fabless companies are launched.

SK Hynix also announced plans to expand investment. Vice Chairman Park Jung-ho said the company is “exploring plans to double its current foundry production capacity.”

“The various options we’re exploring include M&As and building more capacity in Korea,” he added.

By Kim Young-bae, senior staff writer

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