[Heart of Innovation, Corporate Research Institutes ⑪] Samsung Advanced Institute of Technology, Sowing the Seeds of 'Semiconductor Korea'

In 2027, it will be the 40th anniversary of the founding of the Samsung Advanced Institute of Technology. In human years, this would be considered the age of “unwavering maturity.” Although the institute has reached a point where it should be able to move forward confidently, leveraging the capabilities it has accumulated over the years, the prevailing view is that its current status is not what it once was.

On October 22, 1987, Samsung established the Advanced Institute of Technology with a total investment of 125 billion won. It was located near the semiconductor plant in Giheung-eup, Yongin-gun, Gyeonggi Province (now Giheung-gu, Yongin-si, Gyeonggi Province). The institute was tasked with the company’s mission to explore and develop semiconductor technologies that no one else had achieved. Although the Semiconductor Research Center had been established earlier in 1982, the center of gravity shifted to the Advanced Institute of Technology once it was founded. Strictly speaking, the technologies pursued by the institute were not limited to semiconductors. The focus was on developing core technologies needed by the company in the medium to long term across advanced technology fields, including but not limited to semiconductors. Initially, it started with three organizations: the Electronics Device Research Center, Information Systems Research Center, and Materials and Components Research Center. Over time, its scope expanded to include the Communications, Aerospace, and Synthetic Fibers Research Centers. During the tenure of the late Chairman Lee Kunhee, the institute also concentrated on research in biotechnology and energy technologies.

Through these efforts, the Samsung Advanced Institute of Technology sowed the seeds for Samsung’s early semiconductor business and later introduced technologies essential for the entire range of “set” products incorporating semiconductors. In the 1990s, developments such as the “semiconductor plastic package (EMC)” and the “digital video disc recorder (DVDR)” enhanced the competitiveness of Samsung Electronics’ products. In 1997, the “voice mismatch technology” developed by the institute became part of the international standard. In the 2000s, the institute focused on next-generation memory and display technologies, and in recent years, it has reportedly shifted its attention to research in artificial intelligence (AI) and related fields.

The Samsung Advanced Institute of Technology, once renowned for its generous support and top-tier treatment of researchers, began to lose momentum starting in 2015. The organization underwent a complete overhaul, shifting from a focus on medium- to long-term research for future technologies to research for immediate needs. The research organization and workforce were reduced, and a large-scale restructuring took place. Recently, research and development have reportedly been conducted in alignment with the rapidly changing AI memory market and the urgent competition in high-bandwidth memory (HBM) development within the Device Solutions (DS) division. There are also reports that research and development aimed at securing future technologies have been relatively neglected.

Although a turning point to change the atmosphere seems necessary, there appear to be even more sources of instability. The position of vice president, responsible for the institute’s practical operations, has been vacant for eight months. After Vice President Ham Donhee resigned in January, just one year after taking office, a successor has yet to be appointed. There are even rumors that the research organization is facing downsizing or consolidation, with some PhD-level personnel being reassigned to business divisions, contributing to an unsettled internal atmosphere. The institute’s position within the company may become even more precarious going forward. Samsung Electronics has decided to establish the next-generation semiconductor research and development (R&D) complex, “NRD-K,” at the Giheung Campus in Yongin, Gyeonggi Province, investing a total of 20 trillion won in the site by 2030. The central role in technology research that the institute has long held is now likely to shift to NRD-K. When that time comes, it will be necessary to reconsider the future role and utilization of the institute.

Im Hyungkyu, former president of Samsung Electronics who served as head of the Samsung Advanced Institute of Technology from 2005 to 2008, remarked, “Unlike in the past, we have now entered an era where we must research and develop differentiated new technologies in major business fields, rather than conducting vague technological research.” He added, “Previously, the institute tended to focus on technology research for business expansion, but now that Samsung is engaged in a wide range of businesses, it is more appropriate to operate with a focus on developing differentiated technologies in key, flagship business areas.”