SAMSUNG WILL SPLURGE 133 trillion won ($116bn, £89bn) on the development of non-memory chips for the next 11 years in a bid to reduce its reliance on the volatile memory chip market.
The investment, which will also see the firm looking to rattle the likes of Intel, Qualcomm and TSMC, will see Samsung plough roughly $64bn into domestic research and development and a further $52bn toward production infrastructure, Reuters reports.
Additionally, Samsung hopes that its LSI and Foundry investment plan will create 15,000 production and research jobs by 2030.
"The investment plan is expected to help the company to reach its goal of becoming the world leader in not only memory semiconductors but also logic chips by 2030," Samsung said in a statement.
While Samsung's chip division has long been its most lucrative, Bloomberg reports that Samsung semiconductor biz saw a 60 per cent drop in operating profit for the March quarter, the worst decline in more than four years. This is likely due partially to the plummeting prices of DRAM and NAND memory that has been blamed on "oversupply", and also due to weakening smartphone sales.
To counter these losses, Samsung's 11-year-plan shows it's gearing up to take on the likes of Qualcomm and Huawei in the mobile chips market, and the likes of current market leader TSMC in contract chip manufacturing.
"It's rare for Samsung to detail such a long-term plan," Yoo Jong-woo, an analyst at Korea Investment & Securities told Bloomberg. "It's an expression of Samsung's commitment in a chip business that includes not only Intel but also a variety of chipmakers, such as in mobile processors."
News of Samsung's mega-investment comes just days after the firm announced that it's completed development of its first-generation 5nm fabrication process. µ
See how you don't get to like them Apples
Who do Yahoo think you are
Out to Glassture