Lee Jae-yong, vice chairman of Samsung Electronics, threw a "new Samsung statement of departure."
Samsung Group announced on the 24th its vision of investing 240 trillion won in strategic projects such as semiconductors and bio for three years by 2023 and hiring 40,000 people directly. Vice Chairman Lee plans to invest and hire large-scale, which came 11 days after he was released on parole on the 13th. This is the largest amount in the history of a single company that surpasses its 180 trillion won investment plan in 2018.
"The next three years will be the time for a new future order to be reorganized," Samsung said. "We are trying to fulfill the role of companies in the future in preparation for the expected industrial, international order and social structural changes after Corona 19."
Vice Chairman Lee is known to have held a series of meetings with CEOs of each business sector, including memory and foundry business units, and discussed the investment and employment plans.
It will expand its investment to 240 trillion won for three years and invest 180 trillion won in South Korea. It is planning to lead global industrial restructuring and strengthen its market leadership through bold mergers and acquisitions. First of all, the memory semiconductor business is planning to solidify its absolute advantage in global markets, and system semiconductors are planning to lay the foundation for the world's No. 1 leap forward by expanding investment.
In case of system semiconductors, it will develop fleet process in a timely manner and expand its business from existing mobile centers to new applications such as artificial intelligence (AI) and data centers. It is expected that at least 50 trillion won will be invested in the system semiconductor sector, including the second foundry plant in the U.S., over the next three years.
Samsung plans to foster its bio business as a 'second semiconductor' in preparation for the post-corona era. When the four plants currently under construction are completed, Samsung BioLogics' production capacity will rise to 620,000 liters, the world's No. 1.
Samsung Biologics and Samsung Bioepis plan to continue their aggressive investment stance in the future and build a May 6 plant in the field of consignment development production (CDMO) to secure an absolute advantage as global bio pharmaceutical production hubs.
It also increases employment. According to a typical recruitment plan, the employment scale is about 30,000 people over three years, but it will expand the employment of about 10,000 people mainly in high-tech industries. It is also expected that large-scale investments in Korea over three years will create 560,000 employment and jobs.
Samsung Electronics and other major related companies have decided to maintain the recruitment system for new employees to stabilize the domestic job market.
Lee Jae-yong, vice chairman of Samsung Electronics, responded to "parole for national interest." On the 13th, Vice Chairman Lee, who walked out of the Seoul Detention Center saying, "I am listening to the concerns, concerns and expectations surrounding him," began responding to Post Corona with a large-scale investment plan exactly 11 days later. The plan, which includes three keywords, investment, employment, and co-prosperity, is particularly attracting attention as it has put strong power into the semiconductor sector, where national competitions are taking place.
According to the business community on the 24th, Vice Chairman Lee has been meeting with the presidents of major affiliates of the group since his parole to come up with investment plans that meet the national interest. On the day of his parole on the 13th, he headed straight to Samsung Electronics' Seocho office in Seocho-gu, Seoul, to meet with key executives such as Kim Ki-nam, head of Samsung Electronics' DS division. After the Liberation Day holiday, a series of meetings were held for each business sector of Samsung Electronics, including memory and foundry business units. It is understood that it was time to materialize the plan for large-scale investment employment that Vice Chairman Lee had devised before his release.
Speed of investment such as foundry plant in the U.S.
Samsung's investment decision is expected to focus on high-tech foundry fab investment. Some predict that at least 50 trillion won will be invested in the system semiconductor sector, including the second foundry plant in the U.S., over the next three years.
Amid aggressive moves to invest in semiconductor facilities around the world, it is expected to speed up investment in high-tech processes and take competitive advantage. Recently, global semiconductor giants are making investments in new chip production facilities. Earlier this year, Intel announced that it would resume its foundry business in decades to produce chips for its customers. It also announced plans to build two new fabs in Arizona and operate high-tech foundry lines here.
TSMC, the world's No. 1 foundry company, is setting up a high-tech foundry plant in Arizona. In response to U.S. President Joe Biden's move to reorganize the semiconductor supply chain, he also announced plans to increase the number of U.S. foundry to six. It is also well ahead of the process. Recently, they are trying mass-production of 3 nanometer (one billionth of a meter) process for the first time in the world and are responding to demands for foundry from large chip-design companies such as Qualcomm and NVIDIA.
On the other hand, there has been little news of Samsung Electronics' investment recently. Vice Chairman Kim Ki-nam said he would spend 17 billion dollars (about 20 trillion won) to make foundry investments in the U.S. during the Korea-U.S. summit in May, but due to the absence of Vice Chairman Lee, the final decision maker, there was no speedy investment. There are also concerns that production competitiveness is falling behind, with rival TSMC winning orders for Intel's latest GPU foundry.
As of this announcement, Samsung Electronics is expected to focus its capabilities on solving problems that foundry needs to overcome. In particular, it is expected that it will focus on securing new supplies by installing high-tech foundry lines in 'P3', a new semiconductor fab in Pyeongtaek, as well as confirming investment in U.S. foundry. It is also highly likely that Samsung Electronics will make efforts to hire high-end workers to secure next-generation 3-nano process. "It is natural that global companies such as TSMC, Intel, UMC, and Global Foundry are making active investments that have not been in the past, and Samsung Electronics will have no choice but to invest more competitiveness as they make preliminary investments." said Ahn Ki-hyun, executive director of the Korea Semiconductor Industry Association, said.
Realize 'super gap' through investment in memory facilities
It is also expected that Samsung Electronics will make bold investments to secure a 'super gap' in memory, which has an absolute advantage. Its competitor Micron set the world's first record by producing 10-nano 4th generation (1a) DRAM that did not introduce ultraviolet (EUV) process before Samsung Electronics. In the NAND flash field, the latecomers Micron and SK Hynix have completed development of 176-layer products. "Although it is possible to secure costs to develop 'next generation' products in time by developing them first, it is easy to lose enough energy to maintain the gap if it starts to be pushed by late businesses," an industry source said. "It is time for Samsung Electronics to find a solution."
Therefore, it seems that Samsung Electronics is going to significantly expand its investment in order to secure competitiveness in memory field. In particular, it is expected that it will consider hiring manpower and investing in research and development costs to speed up mass production of EUV DRAMs and NAND-Flashs that are scheduled to mass-produce in the second half of this year. It is also predicted that it will take a strategy that will gain an edge in price competitiveness through bold investment in memory facilities. As Micron will run from the second half of next year, a line running as quickly as possible the memory p3 like memory and China can not follow a pricing policy to take strong market share.
Lee Jae-yong, vice chairman of Samsung Electronics, threw a "new Samsung statement of departure."
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