South Korean technology giant Samsung has announced a major investment of approximately $309 billion over the next five years. This major investment aims to significantly strengthen the company’s research and development activities and production capacity. With this investment, Samsung aims to gain a competitive advantage in key areas such as chip, artificial intelligence, and OLED display technologies.
Samsung to Make a Massive Investment
Samsung, which has faced intense competition in the smartphone and television markets in recent years, aims to make a strong comeback after missing opportunities, particularly in the field of AI-enabled memory chips.
According to the company’s plan, the key chip production facilities built at its Pyeongtaek campus will be completed quickly. These new facilities will produce high-bandwidth memory (HBM) chips using Samsung’s flagship manufacturing processes.
According to the company’s statement, construction of the Line 5 production line in Pyeongtaek will be completed in 2027, and commercial production will begin in 2028. This new line plays a critical role in meeting the growing demand for HBM chips used in AI servers.
In addition, Samsung’s SDS division, which develops software for other companies, plans to establish a large AI data center in Jeolla Province, South Korea. This center will house more than 15,000 Nvidia flagship AI GPUs and will be accessible to universities, SMEs, startups, and research institutions.
Samsung’s investment plans also include its Samsung Display division. This unit, which produces OLED displays, is building a new facility to increase production of panels used in phones, laptops, smartwatches, televisions, and XR devices.
Beyond AI and displays, Samsung SDI is also considering establishing a domestic production line for next-generation batteries, specifically all-solid-state batteries, for electric vehicle batteries.
All of these large-scale investments are part of the trade agreement recently signed between South Korea and the US. Under this agreement, South Korean companies including Hyundai, Samsung and SK Hynix will invest a total of $350 billion in the US and reduce mutual customs duties from 25 percent to 15 percent.
