Steady Increase Over the Past 7 Years
Focus on AI Semiconductors and High-Performance Memory
Samsung Electronics is focusing on securing technological competitiveness by continuing its largest-ever research and development (R&D) investments despite ongoing uncertainties in its earnings. In the third quarter of this year, it poured 8.87 trillion won into R&D, marking the largest quarterly investment to date.
Analyzing Samsung Electronics' business reports as of the 31st, R&D investments have steadily increased every year over the past seven years (2017?2023), despite significant fluctuations in sales and operating profits. Notably, even last year, when operating profit was only 6.57 trillion won, the company invested a record-high 28.34 trillion won. This amount is more than four times the profit, and for the first time in history, the R&D investment ratio relative to sales reached double digits at 10.9%.
This year, Samsung Electronics has continued to strengthen its technology-focused investment trend by setting new quarterly records with 7.82 trillion won in the first quarter, 8.05 trillion won in the second quarter, and the largest-ever quarterly investment again in the third quarter. The company is continuously investing in future technologies such as artificial intelligence (AI) semiconductors, high-performance memory, and server-related products. It plans to build a next-generation semiconductor R&D complex at its Giheung campus, investing approximately 20 trillion won by 2030 to establish it as a core research base leading future technologies.
A Samsung Electronics official stated, "We plan to continue technological innovation through sustained R&D investments. In particular, we will double the semiconductor research institute both quantitatively and qualitatively, expand research personnel and R&D wafer input, and solidify our leadership in the global semiconductor market."
The company is also actively investing in facilities. Samsung Electronics' facility investment in the third quarter of this year was 12.4 trillion won, an increase of 300 billion won compared to the previous quarter. It invested 10.7 trillion won in semiconductors (DS) and 1 trillion won in displays (SDC), respectively.
Samsung Electronics plans to carry out facility investments totaling 56.7 trillion won this year, an increase of about 3.6 trillion won compared to the previous year. The company intends to invest 47.9 trillion won in the DS division and 5.6 trillion won in the SDC division.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
