Input 2021.01.18 16:06
Although the largest investment forecast this year comes out,
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According to the industry on the 18th, the size of Samsung Electronics’ facility investment was estimated at about 35.2 trillion won last year. This is an increase of more than 8 trillion won from the previous year (26.900 billion won). It has been three years since 2017 that Samsung Electronics expanded its facility investment. Samsung Electronics, which spent 43.4 trillion won in facility investment, the largest ever during the semiconductor boom in 2017, has reduced its investments to 29.4 trillion won and 26.9 trillion won respectively in 2018 and 2019.
The stock market predicts that Samsung Electronics will increase the scale of facility investment this year as well. Samsung Securities predicted that this year, Samsung Electronics will invest 38 trillion won in semiconductor equipment alone. As of last year, the share of semiconductors in Samsung Electronics’ total facility investment (35.2 trillion won) was 82% (28.900 trillion won). Considering this, Samsung Electronics’ facility investment this year may break the record in 2017, the largest ever.
In fact, Samsung Electronics also said, “The amount of memory investment in 2021 is expected to increase from 2020,” when it announced its earnings in the third quarter of last year.
Samsung Electronics’ facility investment outlook reflects the expectations of the semiconductor supercycle in 2017. KOTRA predicted a semiconductor supercycle from this year’s export outlook due to demand recovery, unit price increase, 5G mobile communication (5G) expansion, and digital transformation (DX) acceleration. According to market research firm IDC, demand for DRAM and NAND is expected to increase by 19.1% and 34.2%, respectively, compared to last year. The unit price is also expected to increase from 2Q.
The government also announced a separate forecast for semiconductor exports for the first time earlier this year, and the exports are expected to exceed $100 billion for the second time after 2018 ($126.7 billion) to $107.5 billion to $11 billion, an increase of 10.2% from last year.
Mirae Asset Daewoo researcher Kim Young-geon said, “Amidst uncertainty in demand due to the novel coronavirus infection (Corona 19) last year, DRAM companies’ facility investment was conservative, but Samsung Electronics is estimated to have maintained the intensity of facility investment.” “Amid the prospect of rising ram prices, the intensity of the relative profit increase enjoyed by Samsung Electronics, which has expanded production capacity, will be stronger than in the past.” “In the case of NAND, we will keep the market price low with sufficient supply and increase our market share based on high cost competitiveness,” he added. “For this, we need to increase the proportion of facility investment in the NAND market this year.”
However, there are concerns that a variable has arisen in Samsung Electronics’ facility investment as Vice Chairman Lee Jae-yong, who was charged with bribery in relation to the Gukjeong Nongdan incident, was sentenced to two years and six months in prison at a remand retrieval.
Dankook University economics professor Kim Tae-gi said, “The government’s prospects for semiconductor exports will not deteriorate greatly depending on the overall market boom, but most of Samsung Electronics’ large-scale investment plans will be postponed due to the sentence of Vice Chairman Lee Jae-yong’s imprisonment.” “If you miss the time due to the absence of the total number, it will be difficult to catch it again.” Taiwan TSMC, the world’s number one semiconductor consignment production company, announced in its fourth quarter earnings report last week that its facility investment this year will reach up to 28 billion dollars (about 30 trillion won). The stock market predicted Samsung Electronics’ investment in non-memory facilities this year at 12 trillion won.