Invested 17 trillion won in R&D in the first half … Spurring innovation of future technologies like semiconductor-AI-5G

In the first half of this year (January to June), Samsung Electronics has invested 1.71 trillion won in R&D expenses, etc., and continues its efforts for future technological innovation. While there are many factors that increase uncertainty in management, such as the situation of the infection by the new coronavirus (Corona 19) and the trade conflict between the United States and China, the strategy is to use the crisis as an opportunity to take a leap go ahead with preventive investment.

Samsung Electronics announced in May that it would build a new foundry production line in Pyeongtaek, Gyeonggi-do, and in June announced that it would build an additional memory semiconductor NAND flash production line. Vice President Lee Jae-yong of Samsung Electronics has repeatedly emphasized investments to turn crises into opportunities, saying: “In difficult times, we must not stop investing for the future.”

Samsung Electronics has set out to build a new foundry production facility in Gyeonggi-do to meet the growing demand for cutting-edge extreme ultraviolet (EUV) -based products. Since Samsung Electronics first started EUV-based 7nm mass production in the semiconductor industry on the Hwaseong S3 line last year, this year it has continuously expanded the scale of ultrafine process production through the V1 line. When the production facilities that started construction begin operations in the second half of next year (July to December), the scale of production of products based on ultrafine processes of 7 nanometers or less is expected to increase more rapidly. The global foundry market is expected to grow around ultrafine processes as new applications such as 5G (5G) mobile communications and artificial intelligence (AI) increase. Eun-Seung Jeong, President of the Foundry Division of Samsung Electronics’ Semiconductor (DS) Division, said: nm. We will continue to grow solidly ”.

Samsung said it would invest 180 trillion won over three years in August 2018. Among them, the investment of 130 trillion won in Korea was announced at an annual average of 43 trillion won. Samsung’s promise is ongoing. Until last year, Samsung’s investment in various facilities and R&D was only 110 trillion won, and it is expected to reach its target of 180 trillion won this year as it continues to expand its investment. In particular, Samsung is strongly promoting artificial intelligence and 5G electronic semiconductors, which will be at the center of the fourth industrial revolution, as growth businesses that will take over the future of Samsung.

Samsung has established AI research centers in countries around the world to strengthen advanced AI-related research. Samsung Electronics operates 7 AI research centers in 5 countries, including Korea, the United States, the United Kingdom, Canada, and Russia. In June, world-renowned AI-related academic Professor Hyeon-jun Seung was appointed director of Samsung Research, a leading research organization, and is actively working to secure key AI talent. This is the first recruitment event after Vice President Lee announced in May that he would actively recruit talented outsiders.

In the 5G field, after the world’s first 5G commercialization in Korea in April last year, it is supplying 5G communications commercialization equipment to major national telecommunications companies such as the United States, Canada, Japan, Australia and New Zealand. . Recently, the leadership of 5G was confirmed by signing a long-term supply contract worth 7.9 trillion won in network equipment with Verizon, the world’s number one telecommunications service provider.

A Samsung Electronics official said: “Building on the confidence that we have achieved the world’s first commercialization of 5G, we are also driving the preparation of future 6G technologies.” He said: “We plan to lead the global standardization of 6G communication technology and the technology development ecosystem.”

Samsung Electronics Vice President Lee Jae-yong continues to carry out ‘field administration’ this year, checking on the status of the response and future technological preparations after Corona 19. In March this year, we visited the Institute of Samsung Advanced Technology in Suwon to check the status of new technology R&D and next-generation future technology strategies. In this meeting, “The more difficult and difficult the times are, the more thoroughly you have to prepare for the future. He stressed the importance of innovation, saying: “Innovation is the way we can give back to people’s support.”

In June, we visited Samsung Electronics’ Semiconductor Research Center in Hwaseong, Gyeonggi Province, and held a meeting with the chairmen of the semiconductor (DS) division to review future semiconductor strategy. Additionally, Samsung Electronics visited the Suwon plant to discuss next-generation product development using new technologies such as AI and the Internet of Things (IoT) in a meeting with senior management for consumer electronics (CE).

Despite the Corona 19 situation, Vice President Lee continued his management on-site by visiting Vietnam and the Netherlands. Earlier this month, we met with the top management of Dutch semiconductor equipment company ASML to discuss next-generation semiconductor cooperation. According to Samsung Electronics, on the 13th (local time), Vice President Lee met with Peter Benink, Chief Executive Officer (CEO) of ASML and Chief Technology Officer (CTO) of Martin Pandenbrink. The two companies are known to have shared their views on cooperation in developing technology for future semiconductors, such as artificial intelligence (AI), as well as EUV equipment supply plans. On the 20th, they met with Vietnamese Prime Minister Nguyen Xuan Phuc in Hanoi, Vietnam to discuss cooperation.

Samsung is pioneering new business and creating services through active mergers and acquisitions. In January, Samsung Electronics signed an acquisition contract with Teleworld Solutions, a company specializing in network design optimization for 5G and Long Term Evolution (LTE). Also, in November 2016, it acquired Harman, an American electronics company, for $ 8 billion to start the electronics business. This merger and acquisition came to fruition with a product called the digital car cockpit, which was introduced in 2018.

Reporter Seo Dong-il [email protected] Go to reporter’s page>