Samsung to invest $115 billion in its foundry business by 2030

Joanna Estrada
April 26, 2019

SAMSUNG WILL SPLURGE 133 trillion won ($116bn, £89bn) on the development of non-memory chips for the next 11 years in a bid to reduce its reliance on the volatile memory chip market. The plan underscores the South Korean firm's ambition to challenge bigger rivals - Taiwan's TSMC in contract chip manufacturing and San Diego-based Qualcomm Inc in mobile processing chips - as the memory chip market contracts sharply after years of an unprecedented boom. Today the company announced plans to invest $116 billion through 2030 in non-memory chips.

While the company does not disclose its investment in the semiconductor business, more than half of its total capital expenditure usually goes to memory chips according to analysts familiar with the matter.

While Samsung's chip division has always been its most lucrative, Bloomberg reports that Samsung semiconductor biz saw a 60 per cent drop in operating profit for the March quarter, the worst decline in more than four years.

The money will go not only for research and development, but for foundries and other production facilities as well, and Samsung plans to employ 15,000 people in the quest to become the world's best and largest processor maker. Local media have reported that the government announcement could come later this month. Samsung has always been the dominant player in the memory business, but with that market shrinking the South Korean manufacturer will be looking to diversify.

While the $115 billion seems like a staggering amount at first, it's in line with what Samsung has been spending in recent years.

Other reports by Click Lancashire

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