Core Viewpoint - Samsung Electronics is intensifying its research and investment in the semiconductor sector, aiming to reclaim its position as the "king of semiconductors" following a strategic push from Chairman Lee Jae-Yong [1][3]. Investment and Financial Performance - In Q1 of this year, Samsung's R&D expenditure reached 9.0348 trillion KRW (approximately 46.78 billion RMB), marking a year-on-year increase of 15.5%, while capital expenditure was 11.9983 trillion KRW, up 6.1% year-on-year [1]. - The capital expenditure for the DS (Device Solutions) department hit a record high of 10.948 trillion KRW, accounting for 91.2% of total investments, which is the first time the semiconductor facilities investment exceeded 10 trillion KRW in Q1 [1][2]. - Historically, from 2015 to 2019, Q1 semiconductor investments ranged from 2 trillion to 6 trillion KRW, with the 2020s seeing an increase to 6 trillion to 9 trillion KRW, highlighting the significant investment surge this year [1]. Strategic Initiatives - The capital expenditure in Q1 was primarily directed towards expanding advanced processes and infrastructure in the DS and SDC (Samsung Display) departments, while also enhancing next-generation memory technology competitiveness [2]. - Vice Chairman Choi Yong-Hyun, who oversees the DS department, is continuing efforts to strengthen fundamental competitiveness, having previously submitted a reflection report and initiated discussions to revitalize corporate culture [2]. Market Challenges and Competitive Landscape - Despite achieving an operating profit of 1.1 trillion KRW in Q1, the improvement was largely due to a recovery in demand for server DRAM and NAND, influenced by preemptive stockpiling amid U.S. tariff concerns [3]. - Samsung has not yet successfully penetrated the HBM (High Bandwidth Memory) supply chain of Nvidia, with SK Hynix outperforming in the HBM market and claiming the top spot in the global DRAM market [3]. - Samsung plans to ramp up its foundry business with a target for 3nm process mass production in the first half of the year and aims to introduce 2nm technology in the second half, while also preparing for HBM4 mass production ahead of market demand [3][4].