Samsung to Invest $115 Billion in Foundry & Chip Businesses by 2030
by Anton Shilov on April 24, 2019 1:00 PM EST- Posted in
- Semiconductors
- Samsung
- Samsung Foundry
- Samsung LSI
Being among the largest contract makers of semiconductors and among leading developers of chips for various applications, Samsung Electronics wants to become the world’s leader in these industries. To do so, the company plans to invest a whopping KRW 133 trillion ($115 billion) in its Samsung LSI and Samsung Foundry businesses.
Samsung will invest $115 billion from now and through 2030, according to the approved plan for the next 12 years. KRW 73 trillion ($63.4 billion) will be invested in R&D in South Korea (which probably means chip R&D as well as process technologies R&D), whereas KRW 60 trillion ($52.1 billion) will be invested in production facilities and infrastructure used to make logic chips for various customers. On average, Samsung will invest roughly KRW 11 trillion ($9.51 billion) per year until the end of 2030.
| Samsung's LSI & Foundry Investment Plan | |||
| Investments Per Year | Investments Through 2030 | ||
| R&D | ~$5.28 billion | ~$63.4 billion | |
| Production Infrastructure | ~$4.34 billion | ~$52.1 billion | |
| Total | ~$9.51 billion | ~$115 billion | |
| Note: | Samsung reports its investment plans in KRW, we convert numbers to USD. | ||
Last year Samsung spent $15.2 billion on R&D in total, so the commitment to spend $5.28 billion every year on semiconductors-related R&D alone seems very significant. In the meantime, spending $4.3 billion on average on expansion of production capacities per year seems rather moderate. For example, Samsung’s production line in Hwaseong (campus pictured below), which was architected for the EUV equipment from the start and which is set to be completed in 2019, will cost the company $4.615 billion.
| R&D & CapEx of Intel, TSMC, and Samsung (LSI + Foundry) | ||||
| 2018 | 2019 | Upcoming Years | ||
| Intel | $28.7 billion | ? | ? | |
| TSMC (CapEx + R&D) | $10.5 billion + $2.848 billion |
$10 ~ $11 billion + ? | ~$10 - $12 billion + ? | |
| Samsung | ? | $9.51 billion | $9.51 billion | |
| Note: | TSMC only spends lion's share of its CapEx+R&D money on development of process technologies and expansion/upgrade of fabs. Intel spends R&D+CapEx on CPUs/SoCs/memory development, on new process technologies, and on expansion/upgrade of fabs. Samsung (LSI + Foundry) spends R&D+CapEx money on development of SoCs, new process technologies, and expansion/upgrade of fabs. |
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Samsung expects that its LSI and Foundry investment plan will create 15,000 additional jobs in R&D and chip production. To put the number into context, Samsung had around 320 thousand employees worldwide as of late 2017, so it is evident that the company is going to boost its workforce by 5% through late 2030 in semiconductor business alone.
Related Reading:
- Samsung Completes Development of 5nm EUV Process Technology
- Samsung Starts Mass Production of Chips Using Its 7nm EUV Process Tech
- Samsung Foundry Updates: 8LPU Added, EUVL on Track for HVM in 2019
- Samsung Foundry Roadmap: EUV-Based 7LPP for 2018, 3 nm Incoming
Source: Samsung
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HStewart - Thursday, April 25, 2019 - link
But this was bad for IBM, but was good for industry, there would not be as many PC machines and laptops and in turn it help Intel and Microsoft, AMD also got side benefits from It and probably would not exist today if was not Intel and Windows.wumpus - Wednesday, May 1, 2019 - link
You have to remember that in 1981, IBM thought they *were* the computer industry (they had been for decades). Intel was a memory company that made CPUs in order to sell more memory (no really, go look it up. They didn't stop selling memory until about 1990).If IBM was going to make a product, they had to be sure that all the parts would be available for the life of the product plus the life of the valuable support contract (of course PCs wouldn't have such things, but don't expect IBM to change their proven profitable ways for something as insignificant as a PC).
IBM even had (still has?) a license to produce x86 chips. They even made an IBM 386SLC (not to be confused with the pin-compatible cyrix chips of the same name. IBM's had way more cache, although for all I know they were cyrix designs). Cyrix was able to use that license to "launder" their x86 CPUs by using IBM foundries (IBM got a cut of the chips).
I forgot how many companies had 8088/8086 licenses something like 6-8 and another 4 or so could produce the 80286. AMD fought for the rights of the 80386 but the courts sided with Intel's claim that "AMD could use but not sell" the 80386 microcode. I don't think Intel ever said how they wanted AMD to use said microcode (except selling it), but one might assume it involved bodily orifices...
IBM's deals with Intel were fine for both parties. The deal that helped seal their fate was with Microsoft.
porcupineLTD - Thursday, April 25, 2019 - link
Shill ACTIVATED!wumpus - Wednesday, May 1, 2019 - link
From memory, the x86 license expires when the company is sold. Of course, the x86 license has been irrelevant for some time (any patents on 32 bit x86 expired at least 15 years ago, although things like PAE and SSE2 just recently expired). AMD of course owns AMD64 (sometimes called x86-64). But good luck selling a chip without any AVX, SSE3, or similar. I'd be shocked if that (and the patent cross-licensing, without which you would be sued for decades if you produced anything remotely like an x86 chip) transferred with the company.I think VIA *is* making a 64 bit x86 chip for the Chinese market, but still need some of those still patented features, thus keeping it out of western markets.
HStewart - Thursday, April 25, 2019 - link
A better option would be if Intel purchase TSMC to help them with there 10nm struggles.coburn_c - Wednesday, April 24, 2019 - link
50¢ of which will go to employeesCkyannanta - Monday, April 29, 2019 - link
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