Samsung to Invest $115 Billion in Foundry & Chip Businesses by 2030
by Anton Shilov on April 24, 2019 1:00 PM EST- Posted in
- Semiconductors
- Samsung
- Samsung Foundry
- Samsung LSI
Being among the largest contract makers of semiconductors and among leading developers of chips for various applications, Samsung Electronics wants to become the world’s leader in these industries. To do so, the company plans to invest a whopping KRW 133 trillion ($115 billion) in its Samsung LSI and Samsung Foundry businesses.
Samsung will invest $115 billion from now and through 2030, according to the approved plan for the next 12 years. KRW 73 trillion ($63.4 billion) will be invested in R&D in South Korea (which probably means chip R&D as well as process technologies R&D), whereas KRW 60 trillion ($52.1 billion) will be invested in production facilities and infrastructure used to make logic chips for various customers. On average, Samsung will invest roughly KRW 11 trillion ($9.51 billion) per year until the end of 2030.
| Samsung's LSI & Foundry Investment Plan | |||
| Investments Per Year | Investments Through 2030 | ||
| R&D | ~$5.28 billion | ~$63.4 billion | |
| Production Infrastructure | ~$4.34 billion | ~$52.1 billion | |
| Total | ~$9.51 billion | ~$115 billion | |
| Note: | Samsung reports its investment plans in KRW, we convert numbers to USD. | ||
Last year Samsung spent $15.2 billion on R&D in total, so the commitment to spend $5.28 billion every year on semiconductors-related R&D alone seems very significant. In the meantime, spending $4.3 billion on average on expansion of production capacities per year seems rather moderate. For example, Samsung’s production line in Hwaseong (campus pictured below), which was architected for the EUV equipment from the start and which is set to be completed in 2019, will cost the company $4.615 billion.
| R&D & CapEx of Intel, TSMC, and Samsung (LSI + Foundry) | ||||
| 2018 | 2019 | Upcoming Years | ||
| Intel | $28.7 billion | ? | ? | |
| TSMC (CapEx + R&D) | $10.5 billion + $2.848 billion |
$10 ~ $11 billion + ? | ~$10 - $12 billion + ? | |
| Samsung | ? | $9.51 billion | $9.51 billion | |
| Note: | TSMC only spends lion's share of its CapEx+R&D money on development of process technologies and expansion/upgrade of fabs. Intel spends R&D+CapEx on CPUs/SoCs/memory development, on new process technologies, and on expansion/upgrade of fabs. Samsung (LSI + Foundry) spends R&D+CapEx money on development of SoCs, new process technologies, and expansion/upgrade of fabs. |
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Samsung expects that its LSI and Foundry investment plan will create 15,000 additional jobs in R&D and chip production. To put the number into context, Samsung had around 320 thousand employees worldwide as of late 2017, so it is evident that the company is going to boost its workforce by 5% through late 2030 in semiconductor business alone.
Related Reading:
- Samsung Completes Development of 5nm EUV Process Technology
- Samsung Starts Mass Production of Chips Using Its 7nm EUV Process Tech
- Samsung Foundry Updates: 8LPU Added, EUVL on Track for HVM in 2019
- Samsung Foundry Roadmap: EUV-Based 7LPP for 2018, 3 nm Incoming
Source: Samsung
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wumpus - Wednesday, May 1, 2019 - link
Or less. And nearly any other website with a comment section. It would be far better for your health.Cullinaire - Thursday, April 25, 2019 - link
Not that I condone uncivilized behavior, but if you are going to be a writer for Anandtech heck any large publication, thick skin is a Prerequisite.outsideloop - Wednesday, April 24, 2019 - link
They should have just bought AMD three years ago.JasonLD - Wednesday, April 24, 2019 - link
US government probably wouldn't let em, unless AMD gives up x86.HStewart - Thursday, April 25, 2019 - link
I would not doubt there is also other area besides x86 but I believe there is rumors AMD giving technology to Chinahttps://www.wsj.com/articles/amd-to-license-chip-t...
supdawgwtfd - Thursday, April 25, 2019 - link
Nice attempt of FUD there...3 year old article which requires subscription to read.
Fuck off you retard.
HStewart - Thursday, April 25, 2019 - link
I just remember there is reference to AMD selling technology to China and search, but I think it would be more mature to have more civilized response here. Just there is technology in x86 and other chips especially with communications and encryption that is not allow in other countries.It just interesting on sites with desktop chips and such, people become so offensive, in stead of being rude just agree to disagree. I be honest one my reasons why I will not use AMD products is people attitudes that used products - but also have used Intel for 3 decades and never had problems.
sa666666 - Thursday, April 25, 2019 - link
And again, you demonstrate your ignorance by not using an arguably better product just because of the comments of other people using the same product. Special snowflake much. I'm beginning to believe what others have posted here about you: you must have stock or something in Intel, and want to praise it whenever possible. That (or mental illness) can be the only reason why your so religiously dedicated to a fricking piece of silicon, and that in your opinion Intel is the Lord and Saviour.sgeocla - Thursday, April 25, 2019 - link
Intel licensed x86 and AMD64 IP to its own China joint venture first, to produce mobile chips that turned out to be duds.Intel did it first because of greed. AMD followed suit because they were going to go bankrupt
without the joint venture money.
Look it up.
HStewart - Thursday, April 25, 2019 - link
The entire AMD / Intel thing came up because of stupid IBM desiring the second source of the original designed by Intel 3 decades ago. It lots of way this hurt IBM, because it did not stop the clone manufactures. Even though I disagree with Apple choice of video, it important to that they kept with same vendor over the years. Smartest decision Apple did in PC area going with Intel and it would be major mistake going anywhere else including there own chips. Apple does use it own chips in there displays and such.