Samsung Electronics (SSNLF) is set to raise its chip spending to a new high in 2026, as it looks to gain ground in the fast-growing AI market. The company said it plans to invest more than $73 billion this year to expand chip output and fund new research. This marks a 22% rise from last year and puts its spending above Taiwan Semiconductor Manufacturing Company (TSM).
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NVDS: built for a short position on NVDAAt the same time, the move shows how demand for AI is now shaping the chip sector. Samsung said it will focus on high-end memory, server storage, and next-stage chip tech.
AI Demand Shifts the Memory Market
Samsung is trying to catch up with SK Hynix Inc., which has taken a lead in high-bandwidth memory, or HBM. This type of memory is key for AI chips used by Nvidia Corporation (NVDA). As a result, strong demand for AI tools has made HBM one of the most sought-after parts in tech.
At the firm’s annual meeting, co-chief Jun Young-hyun said the rise of AI is driving strong orders. He noted that “the rise of agentic AI is fueling an explosive surge in orders,” not only for memory but also for server storage. Meanwhile, Micron Technology Inc. (MU) is also seeing gains from the same trend, as all three firms compete to supply AI systems.
Short Supply Spreads Beyond AI Chips
However, the shift toward AI chips is now putting strain on the rest of the market. As chipmakers focus on high-margin AI parts, the supply of basic memory has declined. These chips are still used in cars, phones, and other devices.
This has led to rising prices and delays in many sectors. In fact, SK Group chair Chey Tae-won said the shortage could last four to five years, due to limits in chip output.
As a result, Samsung’s new plan also aims to boost total chip supply. The company hopes that added capacity will ease pressure on the wider market over time.
Overall, the latest move shows how scale is now key in chips. Only a few firms can spend tens of billions each year to keep up with demand. Samsung’s plan puts it in direct contest with both TSMC and memory rivals.
By using TipRanks’ Comparison Tool, we’ve lined up all the major chipmakers in the industry to gain a broader perspective on each of the stocks and the chip industry as a whole.
