Samsung Electronics Invests 90 Trillion Won Annually, Leading Global Semiconductor Sector

Samsung Electronics led global semiconductor firms in investment last year, pouring approximately 90 trillion won into research and development and facilities. SK Hynix followed with about 35 trillion won, securing the fourth position. This aggressive spending by South Korean companies underscores their commitment to future growth despite a challenging industry climate.

Samsung's investment strategy remained robust even as its Device Solutions (DS) division incurred an operating loss of around 15 trillion won in 2023 due to a semiconductor market downturn. The company invested over 88 trillion won that year, demonstrating a focus on securing future competitiveness despite a significant drop in overall operating profit to about 6 trillion won.

However, the analysis by CEO Score revealed that while total investment volume was high, Samsung's R&D spending as a percentage of revenue stood at 11.3%, and SK Hynix's at 6.7%. This lagged behind competitors like Intel (26.1%), AMD (23.4%), and Qualcomm (20.4%). Similarly, in terms of total investment as a percentage of revenue, Intel (53.8%) and Micron (52.6%) led, with Samsung at 26.9% and SK Hynix at 36.1%.

The report noted that these comparisons do not account for structural differences between companies. Integrated Device Manufacturers (IDMs) and foundries, like Samsung and TSMC, naturally have higher facility investment ratios, while fabless companies such as Nvidia and Qualcomm concentrate investment in R&D.