Technology

Samsung allocates $356 billion for chips, biotech and artificial intelligence

Samsung unveiled its new investment plan on May 24, 2022. The Korean conglomerate is investing $356 billion over the next five years in semiconductors, biotech and artificial intelligence. The plan reinforces the $205 billion plan announced last summer. This equates to a cost increase of more than 30% over the previous five-year plan, which ended in 2021.

80,000 jobs

These investments through 2026 should help Samsung drive long-term growth in these strategic areas, particularly in the semiconductor industry. The conglomerate also wants to beef up its biopharma strategy to make the division as prosperous as its chips business. Samsung also promises to create 80,000 jobs by 2026, mostly in semiconductors and biopharmaceuticals.

As a reminder, Samsung is the largest manufacturer of memory chips in the world, but wants to compete harder with Intel and especially TSMC in the production of processors for companies such as Nvidia and Qualcomm. In particular, he mentions the mass production of 3nm etching chips.

Most of the spending will be done in South Korea, but investments will also be made overseas. For example, Samsung will spend more than $17 billion building a foundry in Texas due to open in 2024. Securing semiconductor supply chains has become important to the United States, and all major foundries have been mobilized. This scarce sector is important and raises important questions of sovereignty.

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