Author: Tronserve admin
Monday 2nd August 2021 01:35 AM
Samsung Electronics R&D Spending Hits Record-High Of $4.4 Bn In Q1
Samsung Electronics Co. kept up record spending of 5.4 trillion won ($4.4 billion) for research and development in the first quarter despite growing uncertainties due to the COVID-19 pandemic.
The South Korean tech said Monday that its R&D expenditure totaled 5.36 trillion won for the first quarter ended March this year, above previous quarterly high of 5.32 trillion won recorded in the fourth quarter in 2018.
The company continued to invest over 5 trillion won on R&D projects since the fourth quarter of 2018 but briefly curtailed the investment to 4.8 trillion won for the October-December period last year amid memory chip market bust.
The ratio of its R&D investment against total revenue reached 9.7 percent in the first quarter this year, adding 0.1 percentage point from a year earlier.
The company spent 20.2 trillion won in total on R&D projects last year, exceeding 20 trillion won for a year for the first time in its corporate history. The R&D expense to revenue ratio reached 8.8 percent, up 1.1 percentage points from a year earlier.
Its R&D expenditure is expected to top 20 trillion won again this year, although the coronavirus impact on its earnings could be more severe in the second quarter.
Samsung Electronics at the general shareholders meeting in March vowed to continue with its capex plans regardless of the coronavirus crisis. The company reaffirmed its commitment of investing 133 trillion won on system chip business through 2023. It also plans to invest 13 trillion won through 2025 to bolster its strength in quantum-dot display business.
In 2019, the company newly acquired 5,075 patents in Korea and 8,729 in the United States. It holds total 180,035 patents across the world as of now, with intellectual property rights ranging on various technologies from memory chip to smartphone and next-generation TV.