Samsung invests in logic chip R&D to take on Qualcomm and TSMC

At the beginning of last year, Samsung became the world's largest chip maker (taking the crown from Intel) in large part thanks to the excellent performance of its memory division. Today the company announced plans to invest $ 116 billion up to 2030 in non-memory chips.

This will help reduce your dependence on the memory segment (which you did not do in the last quarter). More than half of the money will go to R & D, creating 15,000 jobs. The rest will be used to build the infrastructure.

Samsung System LSI, which develops Exynos chips and modems, ISOCELL sensors and more, along with Samsung Foundry (which Fabs chips) will receive about $ 9.5 billion a year until 2030.

Traditionally, Samsung's memory division generates most of the profits (and gets most of the funding). However, in addition to the volatility of that segment, investing in other divisions aims to capture incoming opportunities. Intel threw in the towel, giving up the 5G modems, which were supposed to go on iPhones.

Instead, it seems that Qualcomm and Samsung will share orders for Apple's 5G modems. Samsung acquired Harman in 2017, a major supplier of automotive electronics. Those self-controlled cars, connected to 5G, of which you always listen, will need modems, cameras and AI hardware (where Nvidia has interests).

On the side of the smelter, the main competition is TSMC, the dominant contract smelter, which is receiving orders from Qualcomm, Apple, AMD, Nvidia and Huawei (among others).

VIA