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DigiTimes
Samsung weighs power subsidiary to secure semiconductor electricity by 2027
Samsung Group is reportedly considering the creation of an in-house power procurement subsidiary to secure electricity directly for its semiconductor facilities, with plans for operations to begin in 2027. This move comes as the semiconductor sector experiences fluctuating demand, and the company seeks to mitigate energy supply risks resulting from the anticipated growth in production. The proposed strategy highlights the critical role that power availability will play in the semiconductor industry's future, particularly given the projected intensification of competition for energy resources among chip manufacturers and the transition toward sustainable energy practices.
MonitorConfidence: MediumMid term horizon
Published 12 Aug 2026, 00:20 UTC1 min read
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Summary
TL;DR
- Samsung plans to establish a power procurement subsidiary by 2027.
- The initiative aims to secure direct electricity for semiconductor production.
- Energy supply is becoming a critical concern for chip manufacturers.
- The semiconductor sector may transition from a shortage to glut by 2028.
- Renewable energy sources are expected to surpass coal in the near future.
Interesting facts
- Memory manufacturers currently hold $38 billion in cash collateral.
- Power supply, rather than GPUs, is identified as the bottleneck for AI data centers.
- Taiwan ranks fifth globally in cyber threats, affecting semiconductor and financial sectors.