Samsung Electronics Co Ltd announced on Wednesday that it plans to invest approximately 300 trillion won ($230 billion) by 2042 to establish what the South Korean government referred to as the world’s largest chip-making hub. This investment is part of Samsung’s efforts to strengthen the country’s semiconductor industry.
The amount makes up most of the 550 trillion won in private-sector investment announced by the government on Wednesday, under a strategy that expands tax breaks and infrastructure support to increase the competitiveness of high-tech industries including those involving chips, displays and batteries.
Samsung’s manufacturing additions will include five chip factories and attract up to 150 materials, parts and equipment makers, fabless chipmakers and semiconductor research-and-development organisations, the Ministry of Trade, Industry and Energy said in a statement.
Other countries have announced plans to bolster domestic chip industries, including the United States which last month released details of its CHIPS Act, which offers billions of dollars in subsidies for chipmakers that invest in the country.
South Korea is home to two of the world’s largest memory chip makers, Samsung Electronics and SK Hynix Inc. The country is now aiming to enhance its supply-chain stability and become a prominent player in the non-memory chip industry, which is currently dominated by companies like Taiwan Semiconductor Manufacturing Co Ltd and Intel Corp.
