Bet on the AI opportunity window! Samsung (SSNLF.US) plans to invest $73.3 billion in production expansion and research and development by 2026.

Samsung Electronics (SSNLF.US) plans to invest over 1.1 trillion Korean won (approximately $733 million) in capital expenditures and research and development by 2026, reflecting its expansion of storage chip capacity and increased exploration in the field of artificial intelligence (AI). The company stated in a brief statement on Thursday that this investment will be used to strengthen its leading position in the field of AI technology. Currently, the storage market is experiencing a period of high demand. The strong demand for High Bandwidth Memory (HBM) driven by the AI infrastructure boom has led storage chip giants such as Samsung Electronics, SK Hynix, and Micron Technology, Inc. (MU.US) to allocate more and more capacity to HBM, resulting in severe shortages of general-purpose DRAM for smartphones, PCs, and servers. In this context, these storage chip giants are expanding their capacity by building new facilities or upgrading existing ones and advanced packaging plants. Until the end of last year, these companies were cautious in controlling capacity expansion, learning from past lessons of vicious price wars among storage chip manufacturers. However, with the storage chip market continuing to thrive, they are now turning towards actively expanding production, as not increasing production lines will make it difficult to meet current market demands. Wary of a supply-demand reversal in 2028, Samsung and SK Hynix "cautiously optimistic" However, considering that it usually takes about two years to build a production line, Samsung, SK Hynix, and Micron Technology, Inc.'s capacity is expected to collectively rise to new levels by 2028, and by then the balance of supply and demand may face the risk of reshuffling. According to sources, the management of Samsung Electronics' DS (Semiconductor) business unit is working with the business support team to assess the possibility of a reversal in the global storage semiconductor market around 2028. Therefore, faced with the potential risk of a supply-demand reversal, Samsung and SK Hynix have chosen to be "cautiously optimistic." On one hand, these two giants are actively expanding their investments in HBM and advanced DRAM processes. Samsung is advancing the conversion of its 10-nanometer fifth-generation (1b) DRAM process at its Pyeongtaek base and expanding new production lines at its Pyeongtaek factory. SK Hynix is continuing the construction of its next-generation DRAM production line at its M15X new plant. These actions are aimed at capitalizing on the high-profit window brought by AI. However, on the other hand, both companies are cautious about their expansion plans for general-purpose DRAM. SK Hynix has publicly stated that it will base its expansion on "actual demand rather than optimistic expectations." Samsung has listed "avoiding over-investment" as an important concern in its current storage business strateg...