Samsung Group Makes Giant Investment Until 2023 To Dominate The World Chip Market

The Samsung Group wants to continue to be dominant in the world chip market. (unsplash photo)

JAKARTA - The Samsung Group will invest 240 trillion won (IDR 2965 trillion) in the next three years to expand its footprint in biopharmaceuticals, artificial intelligence, semiconductors and robotics in the post-pandemic era.

South Korea's largest private company on Tuesday, August 24, said investments through 2023 would help strengthen the group's global position in key industries such as chipmaking. But the investment also allows it to explore growth opportunities in new areas such as next-generation robotics and telecommunications.

Samsung Electronics, the world's largest maker of memory chips, said the group plans to strengthen its technology and market leadership through mergers and acquisitions. It does not provide a breakdown of investment figures.

The company did not say whether the latest investment figures included a reported 17 billion US dollars spent on new US chip contract chip factories.

The plan is 30% larger than Samsung's previous three-year strategy unveiled in 2018. The group decided to increase investment to maintain its technology leadership, especially during "emergency situations" at home and abroad.

"The chip industry is the safety plate of the Korean economy. Our aggressive investment is a survival strategy in the sense that once we lose competitiveness, it is almost impossible to return", Samsung Electronics said in a statement.

Chip competitors including Taiwan Semiconductor Manufacturing Co Ltd and Intel Corp are making heavy investments amid a global chip shortage and intensifying competition in the high-end chip segment.

The Samsung Group has 59 affiliates with total assets of 457 trillion won, according to South Korea's Fair Trade Commission.

The investment plans have come more than a week since Samsung Group leader Jay Y. Lee was released from prison on parole following convictions for bribery and embezzlement.