As global competition in artificial intelligence (AI) semiconductors intensifies, Samsung Electronics and SK Hynix invested a combined nearly KRW 125 trillion (approximately US$90 billion) in research and development (R&D) and capital expenditures last year, reinforcing their positions at the forefront of the AI semiconductor market.
Industry analysts say the aggressive investments made during a period of market downturn have become a key driver behind the recent expansion of the AI memory market and the emergence of a new semiconductor supercycle.
According to a report released on June 10 by corporate data research firm CEO Score, which analyzed investment activities among the world's top 10 semiconductor companies by revenue, Samsung Electronics ranked first globally with total investments of KRW 89.89 trillion in 2024. The company spent KRW 37.74 trillion on R&D and KRW 52.15 trillion on facility investments.
Samsung's investment scale exceeded that of Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker, by more than KRW 20 trillion. The figures underscore Samsung's commitment to securing future growth engines across memory, foundry, and advanced semiconductor technologies.
TSMC ranked second with total investments of KRW 69.41 trillion, followed by Intel with KRW 40.45 trillion, SK Hynix with KRW 35.05 trillion, and Nvidia with KRW 34.94 trillion.
Notably, SK Hynix invested more than Nvidia despite the latter's dominant position in the AI accelerator market. The Korean memory maker focused heavily on expanding production capacity and strengthening technological competitiveness, particularly in high-bandwidth memory (HBM), a critical component for AI servers.
Samsung's investment strategy remained consistent regardless of industry conditions. Even in 2023, when memory chip prices declined sharply and profitability deteriorated, the company increased spending. During that year, Samsung invested more than KRW 88 trillion in R&D and manufacturing facilities, exceeding its annual operating profit.
Over the past five years, Samsung's total investment has steadily increased from approximately KRW 72 trillion in 2021 to nearly KRW 90 trillion in 2024. Unlike many manufacturers that reduce spending during economic downturns, Samsung has maintained a long-term strategy aimed at securing leadership in future technology markets.
SK Hynix also accelerated investment efforts to capitalize on growing demand for HBM products. The company allocated more than KRW 6 trillion to R&D and over KRW 28 trillion to facility investments last year, primarily targeting AI server memory production expansion.
Looking solely at R&D expenditures, Samsung Electronics again ranked first with KRW 37.74 trillion, followed by Nvidia at KRW 26.33 trillion, Intel at KRW 19.60 trillion, Broadcom at KRW 15.54 trillion, and Qualcomm at KRW 12.75 trillion. SK Hynix placed eighth with KRW 6.47 trillion in R&D spending.
When measured as a percentage of revenue, however, U.S. fabless and design-focused semiconductor firms recorded higher R&D intensity. Intel led with 26.1 percent, followed by AMD at 23.4 percent, Qualcomm at 20.4 percent, and Broadcom at 17.2 percent. Samsung Electronics posted 11.3 percent, while SK Hynix recorded 6.7 percent.
The findings highlight how long-term investment strategies have become increasingly important in the AI era. Industry observers point to sustained investments in HBM, next-generation memory technologies, and advanced manufacturing processes as key factors behind the current competitiveness of Korean semiconductor companies.
"The semiconductor industry is evolving into a structure where investment capacity is becoming just as important as technological innovation in determining market leadership during the AI era," said an industry official. "The large-scale investments made by Samsung Electronics and SK Hynix over the past several years have been a critical factor in establishing their current competitive advantages."
