Samsung's Record Investment in R&D and Facility Expansion in 2024

Synopsis

Samsung Electronics revealed that it made its largest-ever investment in research and development (R&D) and facility expansions in 2024. The company spent approximately 35 trillion won, marking a significant increase from the previous year.

Key Takeaways

Record R&D Investment: Samsung spent 35 trillion won on R&D.
Facility Investment: Total facility investment reached 53.6 trillion won.
Market Challenges: Facing declines in global market shares.
Strong Revenue Growth: Annual revenue rose to 300.87 trillion won.
Fourth Quarter Performance: Net income increased by over 20%.

Seoul, March 11 (NationPress) Samsung Electronics announced on Tuesday that it achieved its highest-ever expenditure on research and development (R&D) and facility enhancements last year.

The technology leader allocated approximately 35 trillion won ($24.09 billion) toward R&D initiatives in 2024, reflecting a 23.5 percent increase compared to the prior year, as stated in its business report released today, according to Yonhap news agency.

The amount invested in 2024 signifies Samsung's largest commitment to R&D to date. Additionally, the total investment in facilities increased by 500 billion won year-on-year, reaching 53.6 trillion won in 2024, which also represents a historic peak, the company confirmed.

This surge in investment is attributed to Samsung's push to develop new growth strategies in response to escalating challenges in the global marketplace and a decrease in worldwide demand for memory chips.

In the previous year, Samsung's share of the global TV market dropped to 28.3 percent from 30.1 percent the year before, while its stake in the global smartphone market declined to 18.3 percent, down from 19.7 percent.

Furthermore, its market share in the global DRAM sector fell to 42.2 percent in 2024 from 41.5 percent in 2023.

Despite these declines, the company reported an annual revenue of 300.87 trillion won in 2024, which is a 16.2 percent increase from the previous year, marking the second-highest yearly figure after the record set in 2022.

Annual net profit skyrocketed by 122.5 percent year-on-year to 34.45 trillion won, and operating income surged nearly fivefold to 32.72 trillion won from 6.57 trillion won, as per its regulatory filing.

In the fourth quarter, Samsung’s net income rose by more than 20 percent compared to the previous year, exceeding market forecasts, even amidst decreasing global demand for memory chips.

The net income for the October-December period reached 7.75 trillion won (US$5.4 billion), reflecting a 22.2 percent increase from 6.34 trillion won the previous year. Operating profit surged by 129.9 percent year-on-year to 6.49 trillion won, while sales climbed 11.8 percent to 75.78 trillion won.