South Korean technology giant Samsung Electronics has announced a $230 billion investment over the next 20 years to build the world’s largest semiconductor manufacturing base, according to the company. This is part of efforts to boost the nation’s chip industry, Daily Sabah reported.
The Samsung project is part of the government’s private sector investment plan. It includes more tax breaks and support to increase the competitiveness of high-tech sectors, including semiconductor manufacturing.
The production base will be built in Gyeonggi province near the capital Seoul by 2042. Five semiconductor plants are planned for O. They will be located near existing local factories and will produce different types of chips.
The giant Samsung is trying to expand its presence in the manufacturing of advanced chips, expecting that the demand will increase in the coming years with the adoption of new technologies such as 5G wireless networks, artificial intelligence and self-driving cars, etc.
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Semiconductor manufacturing is one of six key technology industries that the country sees as most important to its export-dependent economy.The focus is also on manufacturing batteries, electric vehicles, robotics, displays and biotechnology. The government hopes to attract $422 billion in corporate investment in these projects by 2026.
South Korea’s plan comes at a time when other technology hubs, such as the United States, Japan and China, are beginning to pay more attention to their domestic chip production with protectionist measures, tax breaks and significant subsidies to attract investment.
In addition, Samsung Electronics, Samsung Display division, affiliates Samsung SDI and Samsung Electro-Mechanics plan to invest 60.1 trillion won over the next 10 years in non-Seoul metropolitan areas for display and battery manufacturing.
Samsung is the largest company in South Korea. It has reported a sharp drop in profits in recent months due to weaker demand for consumer electronics products and chips. The company’s last-quarter profit fell nearly 70% as chip prices plummeted.
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Another major South Korean chip maker, SK Hynix, reported an operating loss of $1.3 billion in the October-December period, marking its first quarterly deficit since 2012.