Samsung Electronics said today that it plans to invest approximately $230 billion (300 trillion won) to build five new memory and foundry factories in South Korea, a big step in line with the government’s ambitious goal of establishing a mega semiconductor center. in Yongin, on the outskirts of Seoul. The investments will be made until 2042.
The country’s move signals that it is shoring up the domestic semiconductor production pipeline to secure the supply chain as other countries including the US, Taiwan, Japan and China strive to increase their domestic chip manufacturing to offset Global supply chain risks disruption due to rising tensions between the US and China.
“We are expected to invest around 300 trillion KRW ($230 billion) in the chip manufacturing pool through 2042,” a Samsung spokesperson said in an emailed statement to TechCrunch. Although the government, in a statement, spoke of plans for five plants, the Samsung spokesman declined to comment on the number of plants Samsung will install in the semiconductor group, as well as other details.
Ministry of Trade, Industry and Energy of South Korea (MOTIE) sleepless on Wednesday its new project to invest $422 billion (500 trillion won) by 2026 to promote six major technologies: semiconductors, electric vehicle batteries, autonomous vehicles, robots and displays. Government saying it would allocate $260 billion (340 trillion won) specifically for the chip space to develop system semiconductors by 2026, considering “semiconductors as strategic economic support and national security assets.”
The mega semiconductor hub will also have a full value chain of chip manufacturing processes, from memory, foundry and design houses to material suppliers, and will attract 150 domestic and global non-factory companies and manufacturers of chip materials and equipment. advanced, according to the country’s trade announcement. ministry. The South Korean government wants to encourage high-tech industries by working with corporations and intends to offer expanded tax breaks for companies in the high-tech space, the statement said.
South Korea isn’t the only country making big moves to develop its own manufacturing operations.
Japan has partnered with global chip equipment and semiconductor manufacturers to revive its own semiconductor industry. The world’s largest contract chip producer, Taiwan Semiconductor Company (TSMC), has also been expanding its manufacturing footprint both domestically and internationally in the US and Japan.
Samsung already operates a chip foundry plant in Austin, Texas, and recently announced additional investment plans for the US: $17 billion to build a manufacturing facility in Taylor, Texas. In addition, you are also considering iinvesting $200 billion to establish another 11 chip plants in Texas.
Separately, Korea’s Ministry of Science and ICT announced last month to boost its AI chip industry with $642.5 million.