Samsung Leader Reinforces Home Investment Strategies During American Expansion Push
Samsung Announces Ambitious Domestic Investment Plans
Samsung Electronics, the South Korean tech giant, has unveiled a significant investment initiative aimed at creating quality jobs and nurturing high-value-added industries in Korea. The investment, totalling 450 trillion South Korean won over five years, was announced in May 2022.
The majority of Samsung Electronics' new hires last year were domestic hires, with the company recruiting 10,960 new employees, marking a 20.11 percent increase from the previous year. This trend is set to continue, as Samsung's investment initiative includes a goal to recruit 80,000 new employees over a five-year span.
Samsung's plans encompass various sectors. In the semiconductor industry, the company is investing 20 trillion won in its Giheung campus in Gyeonggi Province to build three semiconductor research fabs and a next-generation research and development facility. The first production line in the new semiconductor cluster is set to begin operations by 2030.
Moreover, Samsung is expanding its Pyeongtaek campus to include advanced memory, foundry, and system semiconductor fabs. In the biotech sector, Samsung Biologics is developing Plants six through eight, and the company has also completed construction of its fifth plant in Songdo-gu, Incheon. Samsung has announced a roadmap to invest 7.5 trillion won over 10 years to expand its biologics business.
Samsung's investment in the domestic market is likely a response to geopolitical uncertainties, aiming to build a stable ecosystem for advanced industries at home. The Samsung chief, Lee Jae-yong, has pledged to invest an additional 360 trillion won through 2047 to establish the largest semiconductor cluster in Korea, spanning 7.28 million square meters in Yongin, Gyeonggi Province.
This represents a 40 percent increase from Samsung's prior investment plans. The investment is separate from Samsung's large-scale US commitments. The Samsung chief is scheduled to attend the upcoming Korea-US summit's business delegation from Sunday to Tuesday.
Industry observers are watching closely for further details on Samsung's domestic investment roadmap. Samsung's continued domestic investment is expected to influence the capital allocation strategies of other major firms. The investment is aimed at creating quality jobs and nurturing high-value-added industries in Korea.
