Samsung Electronics has announced plans to invest 300 trillion won ($230 billion) by 2042 to build the world’s largest chip manufacturing base in South Korea. This move is in line with the South Korean government’s efforts to upgrade the chip industry, which includes expanding tax deduction measures and supporting infrastructure to increase competitiveness in high-tech industries like chips, displays, and batteries.
The investment is part of Samsung’s production increase plan, which includes building five new chip factories, attracting material manufacturers, parts and equipment manufacturers, as well as up to 150 fabless chipmakers and R&D organizations. The South Korean government has also pledged to invest 550 trillion won in the private sector to boost the country’s high-tech industry.
Samsung’s investment aims to improve the supply chain stability and position South Korea as a major chip manufacturer, taking on competitors like the Taiwanese semiconductor company Taiwan Semiconductor Manufacturing Co and US-based Intel Corp. South Korea is already home to two of the world’s largest memory chip makers, Samsung and SK Hynix.
The South Korean Ministry of Trade, Industry, and Energy has welcomed Samsung’s investment, stating that it would help strengthen the country’s chip industry and promote job creation. Other countries, including the United States, have also announced plans to support their domestic chip industry, offering billions of dollars in subsidies to chipmakers investing in their countries.