Samsung Electronics’ goal of becoming the world’s No. 1 in the system (non-memory) semiconductor market by 2030 is expected to accelerate.
Samsung Electronics Vice Chairman Lee Jae-yong recently decided to invest 20 trillion won in a US foundry (semiconductor consignment production) plant while on a business trip to the US. It is expected that the new foundry line to be built in the US, along with the 3rd line in Pyeongtaek to be completed next year, will play an important role in realizing Samsung’s long-term vision.
Samsung, system semiconductor challenge ‘full-scale’
On the 23rd (local time), Samsung Electronics selected Taylor City, Texas, as the site for a US foundry (consignment production) semiconductor plant and confirmed a plan to invest a total of $17 billion (about 20 trillion won). ▷Related articles: Jaeyong Lee, US foundry ‘Twenty trillion’ shot… White House “Welcome” (November 24)
After returning from a business trip to the United States, Vice Chairman Lee returned to Korea on the 24th and met with reporters, saying, “Investing is also an investment, but my heart is heavy because I come to see the harsh voices of the field and the harsh reality of the market.” It appeared to be even more brittle.
With this investment as an opportunity, it is analyzed that the challenge to the goal of ‘Global No. 1 in System Semiconductor’, which was announced by Vice Chairman Lee Jae-yong of ‘System Semiconductor Vision 2030’ in April 2019, is in full swing.
At that time, Samsung Electronics also announced a plan to invest 133 trillion won in system semiconductor production and R&D by 2030. At this time, Vice Chairman Lee said, “After memory, I will definitely take the first place in the system semiconductor field, including the foundry.”
The new plant to be built in the US this time is expected to become a new axis of Samsung Electronics’ foundry business following Pyeongtaek, Giheung, and Hwaseong. The global system semiconductor production system linking Giheung, Hwaseong, Pyeongtaek, and Texas in the US will be further strengthened.
In fact, the advanced foundry process will be applied to the new line in the US. It plans to produce advanced system semiconductors in various fields such as 5G mobile communication (5G), High Performance Computing (HPC), and artificial intelligence (AI).
This is expected to create a synergy effect with the Pyeongtaek Line 3, which will be completed in the second half of next year. Pyeongtaek Line 3 will mass-produce 14nm DRAM and 5nm logic products with EUV (extreme ultraviolet) technology applied.
Vice Chairman Lee’s perception of a ‘relentless reality’ after his business trip is highly likely to lead to drastic investments. In May of last year, Vice Chairman Lee Jae-yong decided to build an EUV foundry line in Pyeongtaek and emphasized to the semiconductor (DS) business executives, “In difficult times, we must not stop investing for the future.”
System semiconductor investment expansion prospect
The reason Samsung Electronics is challenging for the top spot in system semiconductors, such as Vice Chairman Lee Jae-yong’s bold investment decision, is because of its bright marketability. It is also the background for competitors such as Taiwan’s TSMC and US Intel to expand their foundry investments.
A Samsung Electronics official explained, “System semiconductors have unlimited uses, such as smart home appliances, smart cars, and smart factories, and virtually unlimited demand.”
In addition, as Samsung has secured a so-called ‘supergap’ in the memory semiconductor business, it is also a move to prepare a new growth engine by strengthening its capabilities and investing in new areas.
Vice Chairman Lee takes care of system semiconductors and is working hard to strengthen business capabilities. It’s not just ‘System Semiconductor Vision 2030’. In October last year, Vice Chairman Lee visited ASML’s headquarters in Eindhoven, the Netherlands, and discussed ways to expand cooperation. ASML is the only EUV producer in the world.
Vice Chairman Lee Jae-yong’s first step this year was also to attend a ceremony to bring in the foundry production facility at the 2nd Pyeongtaek plant. At this time, Vice Chairman Lee ordered, “Let’s create a myth in system semiconductors.”
Samsung Electronics plans to continue investing in the semiconductor business, centered in Pyeongtaek, after this investment in the US.
When he was released from parole in August, Vice Chairman Lee announced a plan to ‘invest 240 trillion won and hire 40,000 people’ to prepare for the future after Corona 19, reducing the size of the system semiconductor investment plan to 133 It also announced that it would expand from KRW 171 trillion to KRW 171 trillion.