Chairman Lee to invest 20 trillion won in Yongin Giheung…Plans next-gen semiconductor R&D complex

"We will not stop despite the semiconductor recession." Samsung Electronics Chairman Lee Jae-yong has pledged aggressive investment to secure future technological competitiveness. In August 2022, he visited Giheung, Yongin—the heart of Samsung's semiconductor operations—and announced plans to invest approximately 20 trillion won by 2028 to establish a next-generation semiconductor research complex. At the time, the industry was facing a slump due to reduced IT demand following the COVID-19 pandemic, leading to inventory accumulation and falling prices.

The market landscape has shifted over the past four years. As investment in artificial intelligence (AI) servers has accelerated, demand for high-bandwidth memory (HBM), server DRAM, and enterprise solid-state drives (SSDs) has surged. With rising product prices and shipment volumes, Samsung Electronics' semiconductor business performance has improved significantly.

In response to these technology trends, Samsung Electronics announced a large-scale domestic investment plan. Massive funds are being allocated to foster semiconductor clusters in Yongin and Pyeongtaek, while investments related to high-bandwidth memory are being designated for the Chungcheong region.

The memory semiconductor sector is highly sensitive to changes in price and demand. Volatility is possible if sentiment regarding AI server investment adjusts. Samsung Electronics' DS sector is set to announce its finalized second-quarter performance results at the end of this month.