[Concall] Samsung Electronics "Discussing Semiconductor Facility Investment Plans... Various Uncertainties Exist"

[Asia Economy Reporter Park Sun-mi] Samsung Electronics, which announced record-high performance last year due to the semiconductor boom, stated that it has not yet finalized its semiconductor-centered capital expenditure plan for this year.

On the 27th, during the earnings conference call, Samsung Electronics said, "This year's semiconductor capital expenditure (CAPEX) plan is still under discussion due to various uncertainties." However, it maintained its existing investment policy of proceeding with flexible capital expenditures.

Regarding semiconductor capital expenditures last year, Samsung Electronics explained, "Capital expenditures increased compared to 2020, with a particularly high proportion of investment in DRAM and NAND sectors. Expansion was carried out to respond to demand growth exceeding early-year forecasts, and proactive investments were made in high-cost next-generation technologies such as EUV."

Samsung Electronics carried out capital expenditures of 48.2 trillion KRW last year, an increase of about 10 trillion KRW compared to 2020. The investment was concentrated in semiconductors with 43.6 trillion KRW and displays with 2.6 trillion KRW.

Samsung is in a situation where active investment and mergers and acquisitions (M&A) are necessary to achieve its goal of becoming the number one system semiconductor company by 2030. Especially this year, fierce global dominance competition is anticipated as competitors announce large-scale investment plans in the global foundry (semiconductor contract manufacturing) market. Currently, the foundry market is dominated by a duopoly structure with Taiwan's TSMC as number one and Samsung Electronics as number two, but U.S. Intel has declared plans to invest tens of trillions of KRW, effectively signaling its entry into the foundry market.