Samsung reveals hundred-billion dollar push on logic chips

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In an effort to reduce its reliance on the volatile memory chip market, Samsung has announced its plans to invest $116bn in non-memory chips through 2030 as the Korean hardware giant aims to develop chips for self-driving cars and AI-enabled devices.

The plan is part of the company's ambition to challenge its larger rivals, Taiwan's TSMC and San Diego-based Qualcomm, in the mobile processor chip business as the memory chip business has finally subsided after years of an unprecedented boom.

Semiconductor makers around the world are currently racing to create powerful ships to support a wide range of new technologies including 5G, connected cars and artificial intelligence (AI).

Up until now, Samsung has expanded its chip business mostly through organic investment but the company said that its $116bn in spending will be split in half with $64bn for domestic R&D and $52bn for production infrastructure.

Logic chip push

Samsung revealed its ambitions for the future in a statement, saying:

“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.”

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.

Last year, Samsung spent $25bn in capital expenditure and four-fifths of its investment budget went to the semiconductor division which generated 96 percent of the operation's profit through sales of its memory chips.

The company also highlighted the fact that its investment into non-memory chips will create 15,000 jobs.

Via Reuters