Samsung has announced that it plans to invest around a whopping $230 billion over the next 20 years to boost its semiconductor chip-making business. With this investment, the South Korean firm wants to build the world's biggest semiconductor chip factory in South Korea. This plan is a part of the South Korean government's vision to boost the national chip industry.
Samsung will build five new semiconductor chip factories in South Korea. The South Korean government said that Samsung's investment would attract up to 150 firms that develop materials, chip-making equipment, design chips, and do research and development in the semiconductor chip segment. Other Samsung subsidiaries, including Samsung Display and Samsung SDI, plan to invest KRW 60.1 trillion over the next ten years to develop displays and batteries.
South Korea wants to be the world's biggest player in the semiconductor chip industry
The South Korean government unveiled a KRW 500 trillion (around $383 billion) private investment plan today and plans to offer tax breaks and support. The government wants to improve the competitiveness of high-tech sectors, including batteries, displays, and semiconductor chips, to improve the overall business situation in the country. This plan comes amid increased competitiveness in other countries, such as India and the US, that have started offering tax breaks to attract massive investments in the chip industry.
In addition to Samsung's investment in the sector, the South Korean government will invest KRW 25 trillion (around $19.17 billion) over the next five years to support research and development in advanced segments like AI. KRW 360 billion (around $276 million) of that investment will be allocated to develop chip packaging techniques and KRW 100 billion (around $76 million) to supply electricity and water for these huge factories.
Samsung and SK Hynix, the world's two biggest memory chip-making firms, plan to improve their non-memory semiconductor business. Currently, the contract chip manufacturing segment is dominated by TSMC from Taiwan.