As the world continues to chart a new path from the turmoil of covid-19 pandemic, which includes the global chip shortage, tech companies are working to expand existing businesses in their future investments, including chip production.
Samsung Group, South Korea’s tech giant, announced on Tuesday that it will invest $205 billion (240 trillion won) in their semiconductor, biopharmaceuticals and telecommunications units over the next three years to enhance its global presence and lead in new industries such as next-generation telecommunication and robotics.
The investment will be led by Samsung affiliates including Samsung Electronics and Samsung Biologics. It also unveiled a mergers and acquisitions plan to fortify its technology and market leadership.
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With setting aside $154.3 billion (180 trillion won) for home ground, Samsung expects to create 40,000 new jobs by 2023 through the investment.
This announcement comes days after Samsung Electronics vice chairman Jay Y. Lee was released on parole on 13 August right before South Korea’s Liberation Day. People speculated Samsung would be able to move forward with major investments once he was freed from prison, according to local media reports.
Samsung’s latest investment will be used for semiconductors, biopharmaceuticals and the next-generation telco units, according to the company’s statement.
Samsung Electronics plans to develop advanced process technology and expand the business with artificial intelligence (AI) and data centers for its system semiconductors while it will focus on up-to-date technology such as EUV-based sub14-nanometer DRAM and over 200-layer V-NAND products for the memory business. Samsung had announced in May the company will invest $151 billion in its logic chip and foundry sector, to be the top logic chip maker, by 2030.
Samsung Biologics and Samsung Bioepis plan to establish two new plants, in addition to a fourth factory that is under construction, for expanding the contract development manufacturing organization (CDMO) business, the statement said.
South Korea’s largest conglomerate also will support its ongoing R&D in new technologies and emerging application in areas such as AI and robotics along with the next generation OLED, quantum-dot display and high-energy density batteries development.
Samsung’s move to expand its semiconductor production is spurred by the global chip shortage, which has thrown the tech world into disarray, with productions of cars and telecom devices being severely affected.
Other tech companies have joined the race to manufacture chips for their own use as demand buoyed by pandemic-induced digital life skyrockets. Traditional semiconductor companies such as Intel and TSMC are all working to expand production by building new factories in the US and Europe.
Besides the global chip shortage, Samsung has dropped in global position following the incarceration of its chairman Lee Jae-yong. The South Korean giant has seen its leadership in smartphones overtaken by Chinese Xiaomi, highlighting the need for new investments.