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Samsung invests $116 billion in logic chip R&D to take on Qualcomm and Intel

Samsung chipset business

Samsung, the top smartphone brand around the world is planning to invest 133 trillion won or $116 billion over the next decade to take over Intel and Qualcomm in the chipset business.

In early 2018, Samsung snatched the top spot from Intel in becoming the world’s largest chip maker and now the company is planning to invest $116 billion through 2030 in non-memory chips or logic chipsets R&D and production infrastructure.

The company is also planning to challenge Taiwan Semiconductor Manufacturing Co. (TSMC), which takes orders from Qualcomm, Apple, AMD, Nvidia, Huawei, etc.,  to make chipsets for other companies. The company has only designed its own microprocessors that are used in its Galaxy smartphones but seemingly it is looking to take the lead in other aspects of the technology as well.

According to the company, more than half of the investment will towards R&D while the rest will be used to develop the infrastructure. Samsung System LSI, the developer of the company’s Exynos chips and modems, ISOCELL sensors and more, as well as Samsung Foundry, will receive around $9.5 billion a year until 2030.

According to Bloomberg, the South Korean tech giant reported a 60% drop in its operating profit for March quarter which is partially linked to the plunge in the prices of DRAM and NAND memory and weak smartphone sales. The company has also suffered a major setback recently when it had to postpone the launch of Galaxy Fold smartphones over screen issues and recall all the review units.

It is quite a bold move to announce such a large investment in the same week as the Galaxy Fold debacle unfolds but to rise to the top the Samsung will have to take on Intel, Qualcomm, and TSMC which will not be an easy task.

Written by PhoneYear

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