South Korea’s Samsung Group is boosting its spending program by a third mainly to expand its microchip and biotechnology businesses, the WSJ reported.
- Samsung has earmarked 240 trillion won or $205 billion for its capital expenditure and research and development for the next three years, 60 trillion won or 33% higher than its 180-trillion won spending program in the past three years.
- The majority of the investment will likely be spent on its electronics business, the biggest memory chip manufacturer across the globe. The company earlier committed to fast-track investments in logic-chip technology and foundry expansion.
- The capex is also expected to cover the expansion of its drug manufacturing business under Samsung Biologics Co., which plans to build two new plants. The unit scored a packaging deal with Moderna Inc. for its COVID-19 vaccine in May.
- The conglomerate will also invest in batteries, with Samsung SDI Co. eyeing an entry in the American electric-vehicle battery market. It is currently scouting a number of locations in the United States.
The company’s Lee Jae-Yong was released from prison last week, after the Justice Ministry granted parole partly due to “economic factors.” 005935. KS is up 3.65%, while 006400. KS is down 3.51%.