Samsung Group to Invest $360 Billion in Chips and Biotech Over Five Years

Intelligent Finance APP learned that, against the backdrop of Korean corporate groups grappling with mounting economic and supply shocks, Samsung Group recently announced plans to increase spending by more than 30% over the next five years until 2026, reaching 450 trillion won (approximately $360 billion), to support operations in sectors ranging from chips to biopharmaceuticals.

According to the statement, Samsung Group, whose subsidiaries include Samsung Electronics and Samsung Bioepis, has committed to creating 80,000 jobs by 2026, with the majority in the semiconductor and biopharmaceutical industries.

It is reported that Samsung Group is one of the oldest and largest family-run conglomerates in South Korea’s history, and also one of the few groups to have formulated investment plans following the inauguration of South Korea's new president, Yoon Suk-yeol. Yoon Suk-yeol, who began his five-year term on May 10, has been outspoken in his support for these large enterprises, considering them key pillars of his economic growth strategy.

Among them, Samsung Group pays particular attention to its subsidiary, Samsung Electronics. In a vast business empire that spans shipbuilding, technology, healthcare, and finance and is worth trillions of dollars, Samsung Electronics is truly the jewel in the crown. As the world's largest manufacturer of smartphones, displays, memory chips, and consumer electronics, it announced last year a plan to invest $151 billion by 2030 to further advance its cutting-edge chip manufacturing capabilities, most of which will be allocated to its semiconductor division. This division is also expanding rapidly in an effort to compete with Intel (INTC.US) and TSMC (TSM.US) to produce chips for globally renowned companies such as NVIDIA (NVDA.US) and Qualcomm (QCOM.US).

Additionally, Samsung is expected to join key leaders of other prominent chaebol groups such as Hyundai and SK Group in shouldering partial responsibility for driving South Korea's economic growth amid rising prices and supply chain disruptions caused by factors like the pandemic and the Russia-Ukraine conflict. In line with the national blueprint established by the previous administration, Samsung Electronics and SK Hynix have committed to investing over 510 trillion won in semiconductor research, development, and production by 2030.

Finally, Samsung Group also stated in the announcement that approximately 360 trillion Korean won will be used domestically in China, and the rest will be invested overseas. It is reported that Samsung Electronics is currently building an advanced chip factory in Texas, USA, which costs 17 billion US dollars.