Vice Chairman Lee Jae-yong Strengthens 'Super-Gap' Commitment, Samsung to Make Large Investment in NAND

Lee Jae-yong, Vice Chairman of Samsung Electronics

[Asia Economy Reporter Changhwan Lee] Samsung Electronics Vice Chairman Lee Jae-yong is strengthening the company's unparalleled technological competitiveness without wavering amid an unprecedented complex crisis caused by the COVID-19 pandemic, U.S.-China conflicts, and prosecution investigations.

Samsung Electronics already holds a dominant No. 1 position in the global memory semiconductor market, including NAND flash and DRAM, maintaining a market share gap of more than 10 percentage points over latecomers.

In this context, the decision to increase NAND flash production at the Pyeongtaek plant in Gyeonggi Province is seen as a reflection of Vice Chairman Lee's confidence in expanding market share and further widening the gap with latecomer companies.

Vice Chairman Lee has recently been visiting sites whenever possible to encourage employees and emphasize management focused on technological innovation and maintaining a super-gap.

When announcing the establishment of a state-of-the-art extreme ultraviolet (EUV) based foundry line worth about 10 trillion won at the Pyeongtaek campus on the 21st of last month, he said, "We must not stop investing in the future, especially in difficult times."

Earlier, on March 25, he visited the Samsung Advanced Institute of Technology in Suwon, Gyeonggi Province, and stressed, "We must thoroughly prepare for the future, especially in difficult and challenging times. The way we can repay the support of the people is through innovation," adding, "When you think you have hit a limit, gather your strength once again and overcome the wall."

Vice Chairman Lee's commitment to semiconductor investment is also reflected in numbers. Samsung Electronics' first-quarter research and development (R&D) expenses reached 5.36 trillion won, surpassing the previous quarterly record of 5.32 trillion won set in the fourth quarter of 2018. Last year, Samsung Electronics spent 20.1929 trillion won on annual R&D, breaking the 20 trillion won mark for the first time in history.

A significant portion of Samsung Electronics' R&D expenses is known to be used for next-generation semiconductor research and the development of new technologies such as artificial intelligence (AI), 5G, and the Internet of Things (IoT). Additionally, the number of regular employees in Samsung Electronics' Device Solutions (DS) division, which is responsible for the semiconductor business, reached a record high of 55,903 as of the first quarter, a 5.5% increase compared to the same period last year.