TLDR
- Samsung plans to invest over $73 billion in chips and R&D in 2026, up 22% from last year
- The investment surpasses TSMC’s spending and targets AI memory, server storage, and next-gen chip tech
- Samsung is chasing SK Hynix in high-bandwidth memory (HBM), which is critical for Nvidia’s AI chips
- The shift to AI chips is squeezing supply of standard memory used in cars and phones
- SK Group chair warned the memory shortage could last four to five years
Samsung Electronics (SSNLF) said it plans to invest more than 110 trillion won — roughly $73.24 billion — in 2026 across research, development, and facilities. That’s a 22% jump from last year’s total of 90.4 trillion won.
The figure puts Samsung’s chip spending above rival Taiwan Semiconductor Manufacturing Company (TSM) for the year.
Samsung broke last year’s spend into 52.7 trillion won in capital expenditure and 37.7 trillion won in R&D. This year, the company is pushing both higher as it races to lead in AI chips.
The plan was outlined in a corporate filing on Thursday. Samsung also said it is pursuing mergers and acquisitions in robotics, medical technology, auto electronics, and air-conditioning.
The company also confirmed it will pay 9.8 trillion won in regular dividends for 2026.
Much of the investment focus sits on high-bandwidth memory, or HBM — the type of chip that Nvidia (NVDA) relies on for its AI processors.
SK Hynix has taken a clear lead in HBM so far. Samsung’s new spending push is a direct attempt to close that gap.
At Samsung’s annual meeting, co-chief Jun Young-hyun described a sharp rise in demand. He said “the rise of agentic AI is fueling an explosive surge in orders,” covering both memory and server storage.
Micron (MU) is also competing in this space, making it a three-way race to supply AI infrastructure.
AI Demand Tightens Memory Supply
The surge in AI chip orders is having a knock-on effect. As chipmakers shift capacity toward high-margin AI parts, production of standard memory has dropped.
These basic chips still power cars, smartphones, and other consumer devices — and their supply is falling short.
SK Group chair Chey Tae-won flagged the problem publicly, warning that the shortage in conventional memory could last four to five years due to hard limits on production capacity.
Samsung says its expanded output plan is partly designed to ease that pressure over time by boosting total supply.
Scale Is Now a Deciding Factor
At this level of spending, only a handful of companies can keep pace. Samsung, TSMC, and SK Hynix are among the few with the capital to invest tens of billions each year.
Samsung’s $73 billion commitment puts it in direct competition with both TSMC on the foundry side and SK Hynix in memory.
The company’s stock, traded as SSNLF on US markets, rose 54.05% over the past period as investor attention on Samsung’s AI positioning has grown.
Samsung’s Korean-listed stock (005930) is the primary vehicle for institutional investors tracking the company’s moves in the AI chip race.
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