Jakarta, domclub Indonesia
—
Samsung Group
announced on Sunday (16/11) an investment plan of US$310 billion (Rp. 5.18 quadrillion, exchange rate Rp. 16,712) over the next five years, most of which will be used for the development of artificial intelligence (AI) technology.
One of the company’s mainstay subsidiaries, Samsung Electronics, is already the world’s leading memory chip manufacturer, providing important components for the AI industry and its infrastructure.
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Samsung in its statement explained that this five-year investment package includes plans to build a new semiconductor facility, Pyeongtaek Factory 5, which is tasked with meeting the need for memory chips.
Once fully operational, the Pyeongtaek factory is expected to play a greater strategic role, both in the global semiconductor supply chain and South Korea’s domestic chip ecosystem.The new line is scheduled to enter service in 2028.
Samsung SDS, the group’s IT and logistics division, will build two AI data centers in South Jeolla and Gumi.However, the details for this have not been revealed further.
The Samsung Group is a complex network of affiliated companies with cross-ownership under the Samsung brand, rather than a single legal holding company.Samsung Group is South Korea’s largest chaebol, a family-run industrial conglomerate that dominates the country’s economy.
The US$310 billion investment plan also includes several non-AI related projects.
In the investment package, the company stated that Samsung SDI, its electric vehicle battery affiliate, is exploring the creation of a domestic production line for next-generation batteries, including solid-state batteries.
The AI surge has provided a breath of fresh air for Samsung Electronics and SK Hynix, whose high-performance memory chips have become critical to AI computing.
Samsung Electronics reported a profit increase of more than 30 percent year-on-year (yoy) in the third quarter, driven by AI-led demand.
AI-related spending is soaring around the world and tech stock valuations are already sky-high, sparking fears the market bubble could burst like the dot-com boom at the turn of the millennium.
The investment package announced on Sunday comes after the South Korean government pledged to double spending on artificial intelligence next year.
President Lee Jae Myung has promised to usher in the AI era and make the country one of the world’s top three AI powers, after the United States and China.
(fea)
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