Samsung Electronics to Inject $118 for Developing Non-memory Chips

A bold step by Samsung Electronics to challenge companies like Qualcomm and TCMC, a Taiwan-based semiconductors provider as the South Korean firm intends to pump $116 million into non-memory chips segment by 2030.

The investment will help Samsung to cut its reliance on the volatile memory chip market and make chips for catering autonomous vehicles and AI-based devices. The plan reflects the company’s ambition to make a fight among other companies cited above since, after years of an unprecedented boom in the chip market, there is a sharp contract now.

Semiconductor manufacturers across the globe are in a race to launch powerful chips which can be used on new-gen technologies such as 5G mobile networks, AI, and connected vehicles.

Last month, Nvidia Corp was ready to take over Mellanox Technologies Ltd for a whopping $6.8 billion, which ousted rivals Intel Corp in a deal that would assist Nvidia to boost its AI business and data centers.

The South Korean electronics maker has expanded its chip making business with the help of organic investments. According to the company, the new $116 billion investment will be used for domestic R&D and production infrastructure.

The move also comes at a time when Samsung’s smartphone business has struggled to revive growth in the recent times which was once the biggest earning generator for Samsung.

Samsung Electronic could dominate the field of both semiconductors and logic chips by 2030 if everything goes right after the investment.