Samsung Establishes R&D Organization in Silicon Valley

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Samsung Electronics has established a research and development (R&D) organization in Silicon Valley in the United States with the aim of enhancing its competitiveness in next-generation semiconductors. This decision is seen as a response to the growing uncertainties caused by economic downturns and trade tensions between the United States and China. The company aims to gain a competitive advantage by leveraging technological advancements.

www.businesskorea.co.kr/index2.html, Aug. 17, 2023 – 

According to investment banking (IB) industry sources on Aug. 16, Samsung Electronics founded a next-generation semiconductor R&D organization named "Samsung Federal Inc." under the Samsung Advanced Institute of Technology (SAIT) in Silicon Valley on May 12.

This organization has been placed under the Device Solutions Americas (DSA) headquarters, which is responsible for Samsung Electronics' semiconductor business. In the market, there is an expectation that Samsung Electronics will make good use of the newly formed R&D organization to effectively utilize the global semiconductor infrastructure, including the United States.

Samsung Electronics' establishment of the new organization for the development of next-generation semiconductors is closely linked to the recent escalation of uncertainty in the market. As market uncertainties have grown, the decision has been driven by the determination to boost technological competitiveness and achieve an advantage on the global stage.

Samsung Electronics is currently facing challenges in its key sector, memory semiconductors, as demand has sharply decreased due to the economic slowdown. Additionally, in businesses that Samsung Electronics has earmarked as future growth areas, such as semiconductor foundry services, there are difficulties arising from intensified technological competition with rivals like Taiwan's TSMC. In the case of the advanced microfabrication processes that Samsung Electronics has essentially led, TSMC has accelerated its plans to produce prototypes using a 2-nanometer (nm) manufacturing process, raising concerns. TSMC, which has revealed its mass production plans for 2025, has already secured Apple and NVIDIA as its first customers for the 2-nanometer process.

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