Samsung Electronics to invest $9.6 billion annually in logic chips until 2030 | HT Tech

Samsung Electronics to invest $9.6 billion annually in logic chips until 2030

Although Samsung does not disclose the breakdown of its investment in the semiconductor division, analysts say it has annually spent about as much as 10 trillion won in memory chips.

By: REUTERS
| Updated on: Apr 24 2019, 11:29 IST
Samsung which currently employs around 100,000 people locally, said it will spend 60 trillion won on production infrastructure and the rest on domestic R&D.
Samsung which currently employs around 100,000 people locally, said it will spend 60 trillion won on production infrastructure and the rest on domestic R&D. (AP)

Samsung Electronics plans to invest 11 trillion won ($9.57 billion) annually through 2030 in logic chip businesses, including its foundry business, and expects the move to help create 15,000 jobs over the period.

The total investment of around 133 trillion won comes at a time when the world's top memory chip maker is strengthening its non-memory semiconductor businesses such as contract chip manufacturing, known as foundry, and mobile processors.

You may be interested in

MobilesTablets Laptops
27% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

Although Samsung does not disclose the breakdown of its investment in the semiconductor division, analysts say it has annually spent about as much as 10 trillion won in memory chips, Samsung's major income earner.

Also read
Looking for a smartphone? To check mobile finder click here.

"Samsung appears to be aggressive on non-memory side given the size of the spending, but it is too early to tell whether this long-term plan will work out because it depends a lot on the demand situation and market conditions," Song Myung-sup, a senior analyst at HI Investment & Securities said.

The South Korean tech giant, which currently employs around 100,000 people locally, said it will spend 60 trillion won on production infrastructure and the rest on domestic R&D.

ALSO READ: Samsung retrieving all Galaxy Fold review units after defective screen reports

"The investment plan is expected to help the company to reach its goal of becoming the world leader in not only memory semiconductors but also logic chips by 2030," Samsung said.

With a 19% market share, Samsung is ranked No.2 in the foundry sector, trailing market champion Taiwan's TSMC, according to industry tracker TrendForce.

Samsung also produces Exynos mobile processor chips used in its mobile phones. The South Korean government is preparing for its own support program for the non-memory chip sector, an official at the industry ministry said, without giving further details. The government's announcement could come later this month, according to local media reports.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 24 Apr, 11:29 IST
NEXT ARTICLE BEGINS