Join our FREE personalized newsletter for news, trends, and insights that matter to everyone in America

Newsletter
New

Samsung To Spend Record $73 Billion On Facilities, R&d To Meet Soaring Chip Demand

Card image cap

Shareholders look at next-generation high bandwidth memory products, sixth-generation HBM4 and seventh-generation HBM4E, at Samsung Electronics’ annual general meeting in Yeongtong District, Suwon, Gyeonggi, on March 18. [KIM SEONG-RYONG]

 
Samsung Electronics plans to spend at least 110 trillion won ($73.3 billion) on facilities and research and development (R&D) this year, positioning itself to meet robust growth in chip demand while leaving room for sizable merger and acquisition (M&A) opportunities.
 
The planned expenditure would set an annual record for the company, as the combined figure has never once crossed the 100 trillion won threshold. In 2025, the tech giant posted a record high of 90.7 trillion won in combined facility investments and R&D spending.
 
 
In an electronic disclosure report released Thursday, the Suwon, Gyeonggi-based electronics giant noted that the investment will be centered around semiconductors — especially high-performing ones like high bandwidth memory (HBM).
 
“As the only semiconductor company globally capable of providing a 'one-stop solution' encompassing memory, foundry and advanced packaging, the company aims to secure leadership in the AI chip era,” the corporate value enhancement plan read.
 
“[The company] seeks to solidify its dominant position in high-value memory segments such as HBM while maintaining a sustained technological supremacy over competitors,” it said.
 
In a more future-oriented move, it also opened the door to large-scale M&A in the robotics and automotive sectors, which could be funded by its own hefty cash reserves beyond the proposed 110 trillion won.
 
Nvidia CEO Jensen Huang poses for a photo with Samsung executives at the Nvidia GTC global AI conference in San Jose, California, on March 16. [REUTERS/YONHAP]

Nvidia CEO Jensen Huang poses for a photo with Samsung executives at the Nvidia GTC global AI conference in San Jose, California, on March 16. [REUTERS/YONHAP]

 
“[The company will] pursue meaningful-scale M&A in future growth areas such as advanced robotics, medical technology, automotive electronics and heating, ventilation and air conditioning segment,” it stated.
 
Samsung is ramping up its manufacturing capacity both at home and abroad after clinching large-scale deals with U.S. Big Tech firms like Nvidia, Google, AMD and Tesla.
 
Samsung Electronics co-CEO Jun Young-hyun, in charge of the company's semiconductor business, left, and AMD CEO Lisa su pose for a photo at the ceremony held in Samsung Electronics' Pyoengtaek campus in Gyeonggi on March 18. [SAMSUNG ELECTRONICS]

Samsung Electronics co-CEO Jun Young-hyun, in charge of the company's semiconductor business, left, and AMD CEO Lisa su pose for a photo at the ceremony held in Samsung Electronics' Pyoengtaek campus in Gyeonggi on March 18. [SAMSUNG ELECTRONICS]

 
At the Pyeongtaek site in Gyeonggi, the company is upgrading dynamic random-access memory (DRAM) production to its latest 1c process, which will be used for HBM and advanced DRAM chips. Construction of the P5 facility, which had previously been delayed during the semiconductor downturn, resumed this year with a timeline accelerated by roughly six months compared to earlier plans.
 
Beyond home turf, the United States stands as the key project area where a new chip factory in Taylor, Texas, with a price tag of $45 billion, is scheduled to be operational by the end of this year. It also received regulatory approval for the second factory earlier this month.
 
Samsung, meanwhile, reported 126.9 trillion won in cash and cash equivalents last year, up 11.7 percent from the previous year. Net cash — cash and equivalents minus borrowings — also rebounded above 100 trillion won for the first time in three years since 2022.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]