Samsung Raises Chip Investment 22% to 110 Trillion Won ($73.3B)
Samsung Electronics will allocate over 110 trillion won ($73.3B) in 2026, a 22% increase from last year, to expand chip capacity and research focused on AI semiconductors and foundry processes. This ramp-up aims to challenge SK Hynix’s dominance in high-bandwidth memory critical for Nvidia accelerators during a multi-year memory shortage.
1. Record Capex Plans
Samsung Electronics will commit over 110 trillion won ($73.3 billion) in 2026 to expand chip capacity and R&D, a 22% increase from 2025 that surpasses Taiwan Semiconductor Manufacturing Co.’s $50 billion capex plan.
2. AI-Focused Strategy
Co-CEO Jun Young-hyun highlighted the surge in agentic AI orders driving demand across high-bandwidth memory, server-grade storage and next-generation AI chips, prompting a strategic shift toward advanced foundry processes.
3. Memory Shortage Implications for Nvidia
The expansion may help alleviate a global memory deficit hampering production of Nvidia accelerators, where SK Hynix currently holds high-bandwidth memory dominance, but industry leaders expect shortages to persist for four to five years.