Samsung Electronics, the renowned South Korean tech giant, is set to invest an unprecedented 110 trillion won (approximately $73.3 billion) this year in advancing research and expanding the production of artificial intelligence-based microchips.
According to a report by Bloomberg, Samsung aims to boost its investments by 22% in 2026, striving to reclaim its leadership in AI chip manufacturing, a position currently held by SK Hynix, the leading supplier of high-speed memory chips to Nvidia.
Samsung’s planned expenditure surpasses the capital investments of around $50 billion by its competitor, Taiwan Semiconductor Manufacturing, for this year.
The surge in demand for high-performance memory chips needed for Nvidia’s accelerators has created unprecedented pressure on Samsung, SK Hynix, and Micron Technology. However, this shift in production focus is causing a significant shortage of conventional memory chips essential for modern devices ranging from cars to smartphones.
This shortage is already impacting corporate profits, disrupting business plans, and inflating prices for everything from laptops and smartphones to automobiles and data centers. Many experts anticipate that the situation may worsen before global conditions improve.