Samsung Group will pour 450 trillion won into future growth engines and new growth IT sectors for the next five years. Eighty percent of the total, or 360 trillion won, will be invested in Korea.
Samsung will hire 80,000 freshmen employees in the next five years to expand youth employment. The group will nurture an ecosystem of growing together through mutual collaboration.
These were contained in Samsung’s plan to make preparations for the future for dynamic innovation growth, which was announced on May 24.
Samsung Electronics and related companies of Samsung Group will focus on investing in future growth engines, new growth IT sectors and prioritizing the nurturing of an industry ecosystem to grow together with large- and small-sized companies.
To this end, Samsung will channel 450 trillion won over the next five years.
The investment amount represents a 30 percent surge, or a jump of 120 trillion won over the 330 trillion won Samsung had invested for the past five years.
Samsung’s domestic investments will amount to 360 trillion won, an over 40 percent jump or a surge of 110 trillion over the past’s 250 trillion won.
Investment areas include future new businesses, including semiconductor, bio and new growth IT segments such as AI and 6G next-generation telecom.
Samsung’s decision to make massive investments worth 450 trillion won may be construed as its determination to secure unmatched leadership in the semiconductor segment and explore new growth engines, such as AI and 6G telecom.
The reason is that rivals’ pursuit gets more intensive in the chip sector, Samsung Electronics’ cash cow and the growth of future growth engine sectors show signs of slowing compared to the chip sector.
President Yoon Suk-yeol and U.S. President Joe Biden, escorted by Lee Jay-yong, the de facto leader of Samsung Electronics, toured the company’s chip plant in Pyeongtaek, 70 km south of Seoul, on May 10, reaffirming the two allies’ commitment to strengthen cooperation in key sectors, such as advanced chips.
In this regard, Samsung Electronics decided to seize on preemptive investments in the chip market to secure hegemony.
Samsung Electronics has a strategy to expand its lead over rivals in the memory sector, which is dominated by Samsung. Samsung plans to expand the utilization of extreme ultraviolet photolithography equipment, produced by ASML Holding N.V. Samsung Electronics is known to have secured enough EUV photolithography equipment to be used for the next five years, each piece fetching between 200 billion won and 300 billion won. Samsung Electronics’ 14nm DRAM is recognized superior to Micron’s 4G, 10nm DRAM since the former’s width is shorter.
Samsung Electronics plans to raise its market share from current 44 percent.
In the fables sector, chip design, Samsung Electronics will focus on investing in areas such as the high-performance, low-power mobile application processor (AP) segment.
The company is said to have begun the development of APS for exclusive use of smartphone Galaxy series.
In the foundry sector, Samsung strives to narrow the gap with Taiwan’s TSMC, which is the world’s No. 1 foundry maker. Samsung Electronics’ gate all-around (GAA), a foundry process technology, is known to be superior to TSMC’s counterpart.
The Korean chipmaker plans to advance the mass production of 3nm or less chips to secure competitiveness. Samsung plans to make massive investments in the bio sector.
Samsung will maintain aggressive investments to secure competitiveness in the bio sector, while striving to explore new growth engines, including the expansion of biosimilar pipelines. Samsung plans to nurture the biosimilar segment as its “second chip legend.”
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