Samsung Breaks Ground On $15bn Semiconductor Complex

Samsung Electronics has broken ground on a new semiconductor research and development complex at its Giheung Campus in Yongin, Gyeonggi Province, south of Seoul, saying it plans to invest about 20 trillion won ($15bn, £12.7bn) in the complex by 2028.

The groundbreaking was attended by Samsung Electronics vice chairman Lee Jae-Yong, the de-facto leader of South Korea’s biggest company, in his first official function following a controversial presidential pardon earlier this month.

Samsung said the slogan for the groundbreaking of the 109,000 square-metre complex was “Creating the future with new technology”.

New technologies

It said the complex would include a dedicated semiconductor R&D line scheduled to become operational in mid-2025.

“We plan to create a virtuous cycle structure that leads to organisational growth through various educational opportunities where excellent R&D personnel can gather and grow on their own,” said Gye-hyun Kye, head of the firm’s Device Solutions (DS) division.

Samsung Electronics, the world’s biggest memory chip maker and second-largest chip contract manufacturer, said the new facility would lead advanced research on next-generation devices and processes for memory and system chips, as well as development of new technology based on a long-term roadmap.

The company said in a statement it is “seeking to overcome the limits of semiconductor scaling”.

Corruption

“We need to continue our tradition of investing pre-emptively and emphasising technology,” Lee said during the ceremony.

Lee met with employees of the semiconductor business and separately with executives to discuss ways of expanding the firm’s semiconductor leadership, Samsung said.

Lee, convicted of bribery and embezzlement in 2017, and twice jailed for bribing former president Park Geun-Hye, received a presidential pardon earlier this month.

The government justified the move, saying Lee was needed as leader of Samsung as South Korea pushes to recover from pandemic economic turmoil.

Lee was first jailed in 2018 for offences including embezzling Samsung funds to buy an $800,000 horse for the daughter of a friend of the president.