Samsung is spending $15 billion on a new semiconductor chip research facility

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Samsung has announced that it has started working on a new research and development facility for semiconductor chips. The new plant is coming up at its Giheung Campus in Yongin, Gyeonggi Province, in South Korea, and the company is spending KRW 20 trillion (around $15 billion) on this facility by 2028.

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Vice President,
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, was present at the
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. Over 100 other Samsung officials, including Device Solutions CTO Jeong Eun-Seung, Jin Kyo-Young (President of SAIT), Lee Jeong-Bae (Director of Memory Business Division), Siyoung Choi (President of
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), and Yong-In Park (President of
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), and employees were present for the ceremony.

This is Lee’s first official move since he
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in a case related to bribery. The South Korean firm’s Giheung Campus is where the company started manufacturing its first semiconductor chips over 40 years ago. It is also the place where it manufactured its first 64MB DRAM in 1992.

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The new semiconductor facility will cover 109,000 square meters and play the role of a critical research base for the company in semiconductor R&D fields such as fabless system semiconductor design, foundry, and memory. The dedicated semiconductor R&D line will be operational sometime in 2025.

Samsung’s chip division has contributed significantly to the company’s success over the past few years, especially since the chip shortage after the COVID-19 pandemic. It
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. The South Korean firm
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.

Although it is among the only two firms (apart from
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) capable of manufacturing chips using
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or better technologies, it has been losing clients for a few years due to yield and power efficiency issues. It is being reported that the company’s
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that improves power efficiency and performance.

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