SEOUL - Samsung Electronics Co Ltd plans to invest $116 billion in non-memory chips through 2030, to cut its reliance on the volatile memory chip market and develop chips to power self-driving cars and AI-enabled devices.
Global semiconductor makers are in a race to produce powerful chips to support new technologies such as fifth-generation mobile networks, connected cars and artificial intelligence . “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,” it said in a statement.
“Samsung appears to be aggressive on the non-memory side given the size of the spending, but it is too early to tell whether this long-term plan will work out because it depends a lot on the demand situation and market conditions,” said senior analyst Song Myung-sup at HI Investment & Securities. South Korea, the world’s biggest producer of memory chips thanks to Samsung and domestic rival SK Hynix Inc, also wants to reduce its reliance on memory chip sales to smoothen volatile export trends.
With a 19 percent market share, Samsung is a distant second player in the foundry - or contract chip manufacturing - sector, trailing market champion Taiwan Semiconductor Manufacturing Co Ltd , according to industry tracker TrendForce.
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