Samsung to raise spending by over $450 trillion to help businesses

Samsung to raise spending by over $450 trillion to help businesses

Samsung plans to raise spending by more than 30% to 450 trillion won over the course of the half-decade to 2026 to shore up businesses from chips to drugs as South Korea s conglomerates struggle with growing economic and supply shocks.

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The conglomerate's units from Samsung Electronics Co. to Samsung Biologics Co. dominate Korea's economy through the year 2026, mostly in semiconductors and biopharmaceuticals.

Samsung is one of a handful of so-called chaebol that are outlining investment plans as the country s new president takes office, run by the scion of one of Korea's oldest and wealthiest families. President Yoon Suk Yeol, who began his five-year term May 10, is a vocal supporter of the conglomerates and has made them a key pillar in his economic growth plans.

The group is focusing on Samsung Electronics, the crown jewel of a multibillion-dollar empire that spans shipbuilding, technology, health care, and finance. The world's largest maker of smartphones, displays, memory chips and consumer appliances unveiled plans last year to invest $151 billion through 2030 to delve deeper into advanced chipmaking. Much of it will go towards its semiconductor division, which is expanding rapidly in an effort to compete with Intel Corp. and Taiwan Semiconductor Manufacturing Co. in making chips for global names such as Nvidia Corp. and Qualcomm Inc.

Read more: Samsung in talks to hike chipmaking prices by Up to 20%.

The latest investment blueprint of Samsung Group, which overlaps with public pledges made in 2021, comes about a year after family scion Jay Y. Lee walked out of jail. The conglomerate s leader, who was serving a sentence on graft charges, was paroled just months ahead of the presidential election earlier this year.

Samsung is expected to shoulder part of the responsibility for growing the country's economy in a country dealing with rising inflation and supply chain disruptions due to the pandemic and war in Ukraine, along with the heads of other prominent chaebol, including the Hyundai and SK groups. Samsung Electronics and SK Hynix Inc. pledged to invest more than 510 trillion dollars in semiconductor research and production in the years to 2030 under a national blueprint devised by the previous president's administration.

The group said about 360 trillion won will be spent domestically while the rest will be invested overseas. In Texas, Samsung Electronics is building an advanced $17 billion US chip plant, a win for the Biden administration as it prioritizes supply chain security and greater semiconductor capacity on American soil. Joe Biden stopped by Samsung's most advanced chipmaking facility on his first trip to Asia as a US president, hailing joint efforts to safeguard supply chain security.

Read more: Samsung Struggles to Go Green in Coal-Addicted South Korea

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