Samsung Spends $26B on R&D, $36B on Capex in AI Chip Push

Samsung Electronics poured approximately 100 billion won ($69 million) daily into research and development, reaffirming its technological prowess. The company's capital expenditure reached 52 trillion won, exceeding initial plans by 5 trillion won.

Amid intensifying global competition for AI semiconductor dominance, Samsung is leveraging its overwhelming capital strength to solidify leadership in high-bandwidth memory (HBM) and capture the advanced foundry and packaging markets.

Record R&D of 37.7 Trillion Won, Over 20,000 Patents

According to Samsung Electronics' annual report disclosed on the 10th, the company spent 37.74 trillion won on R&D last year, up 7.8% from the previous year. This represents an all-time high, averaging approximately 104 billion won per day in technology development.

R&D as a percentage of revenue stood at 11.3%, similar to the previous year's 11.6%. The massive investment translated into intellectual property gains, with Samsung acquiring 10,639 domestic patents and 10,347 U.S. patents during the period.

1c DRAM and HBM4 to Reclaim AI Memory Leadership

The astronomical R&D investment focused on breaking through memory limitations and stabilizing next-generation process yields. Samsung recently began mass production and shipment of HBM4 with industry-leading performance, reclaiming leadership in the AI chip market. Analysts credit the preemptive adoption of 10-nanometer sixth-generation DRAM (1c), the most advanced process available.

"For DRAM, we plan to expand supply of performance-competitive HBM4 to meet demand from new GPUs and ASICs in the AI market," Samsung said. "We will also continuously increase the proportion of AI-related products including high-capacity DDR5, LPCAMM2, and GDDR7."

Advancement in next-generation technologies is accelerating beyond memory. Last year, Samsung became the first in the industry to mass-produce 24Gb GDDR7 DRAM and 10-nanometer-class sixth-generation server DRAM. In system semiconductors, the foundry division is targeting mass production of 2-nanometer processes in the second half of this year, while the System LSI division improved CPU performance by up to 39% with its mobile application processor "Exynos 2600."

52 Trillion Won Capex, 90% in Semiconductors

Samsung opened its wallet boldly for future-oriented facility investment. The company spent a total of 52.7 trillion won on facilities for semiconductors and displays last year, exceeding planned investment by more than 5 trillion won.

Notably, 47.5 trillion won—nearly 90% of total capex—went to the Device Solutions (DS) semiconductor division. Massive funds were allocated to expanding production infrastructure centered on the Pyeongtaek campus, securing next-generation extreme ultraviolet (EUV) lithography equipment, and constructing "NRD-K," a large-scale advanced R&D complex at the Giheung campus.

Industry observers view Samsung's aggressive investment as a strategic move to maximize its "turnkey" capabilities—the only company globally that encompasses memory, foundry, and advanced packaging. The plan aims to capture customized demand from global big tech customers through convergence solutions such as vertically stacked HBM (zHBM).

Agentic AI Robotics: Lee Jae-yong's 'Fundamental Competitiveness'

AI innovation across the finished product ecosystem beyond semiconductors is also gaining momentum. The Device Experience (DX) division is focusing on combining software capabilities with its existing hardware-centric business. Samsung is expanding into future convergence ecosystems, developing "agentic AI" robots that judge and move autonomously by combining Samsung's AI with hardware from subsidiary Rainbow Robotics.

Samsung's comprehensive investment reflects Chairman Lee Jae-yong's management philosophy of returning to fundamentals during crises. "In difficult times, preemptive R&D and unwavering investment are necessary," Lee has repeatedly emphasized. "Our survival and future depend on securing new technologies."

Analysts say Samsung's head-on strategy of building "fundamental competitiveness" without being swayed by immediate market uncertainty is yielding results as the company positions itself to lead the coming AI boom.