Samsung to Pump $230 Billion Into ‘World’s Largest Chip Base’


South Korean tech giant Samsung Electronics is planning to invest $230 billion to develop what the country’s government called the world’s largest chip-making base.

Samsung will make the around 300 trillion won investment over the next 20 years as South Korea looks to boost its national chip industry.

The investment is part of a 550 trillion won private-sector investment plan unveiled by the South Korean government on Wednesday. Seoul’s strategy aims to expand tax breaks and support to raise the competitiveness of high-tech sectors including those involving chips, displays and batteries.


Also on AF: South Korea Warns US Chips Act Could Backfire, Harm Investment


“The economic battlefield, which recently began with chips, has expanded… countries are providing large-scale subsidies and tax support,” said President Yoon Suk Yeol on Wednesday.

“[We] must support private investments to ensure further growth… the government must provide location, R&D, manpower, and tax support.”

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 near Seoul, the industry ministry said in a statement.


Critical tech in focus

In addition to private-sector investment, the government will budget 25 trillion won or more over five years for R&D in strategic technologies such as artificial intelligence.

It will provide about 360 billion won to develop chip packaging, and about 100 billion won in electricity and water infrastructure this year for industrial complexes.

In January, the government proposed raising the tax deduction rate for facility investments in chips and other strategic technologies from 8% to 15% for large corporations.

Separately, Samsung Electronics, unit Samsung Display, affiliates Samsung SDI and Samsung Electro-Mechanics said they plan to invest 60.1 trillion won in the next 10 years in regions outside the Seoul metropolitan area to develop chip packaging, displays and battery technology.

South Korea is home to the world’s two biggest memory chip makers Samsung Electronics and SK Hynix.

The country is looking to improve supply-chain stability to become a major player in the non-memory chip field, currently dominated by chipmakers such as TSMC and Intel.

Its plans also follow similar steps from other countries to bolster domestic chip industries, including the United States which last month released details of its CHIPS Act, offering billions of dollars in subsidies for chipmakers that invest in the country.


  • Reuters, with additional editing by Vishakha Saxena


Also read:

Korean Firms Likely to See Cap on Advanced Chips in China: US

South Korea Eyes Huge Incentives for Chip Investments at Home

China Approves Fund Targeting Korean, Local Chipmakers

ASML Plans $181 Million Chip Centre in South Korea – Nikkei



Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has been working as a digital journalist since 2013, and is an experienced writer and multimedia producer. As an eager stock market trader and investor, she is keenly interested in economy, emerging markets and the intersections of finance and society. You can tweet to her @saxenavishakha

Recent Posts

China’s Shenzhou-16 Rocket Takes Astronauts up to Space Station

The astronauts will replace the three-member crew of the Shenzhou-15, who arrived at the space…

2 hours ago

Singapore Ousts Hong Kong as APAC’s Costliest City for a Home

A heavy influx of immigrants and a trend among young professionals to move out of…

3 hours ago

Elon Musk Reaches China, Meets Foreign Minister Qin Gang

The trip is Musk's first to China since he made headlines in early 2020 by…

5 hours ago

Japan Plans to Beam Solar Power From Space by 2025 – engadget

The country made a breakthrough in space-based solar energy back in 2015 and now says…

5 hours ago

India May Cut Import Tax on Solar Panels Amid Domestic Shortage

Government sources said the import tax may be halved, and GST cut, because local producers…

6 hours ago

China Strains, AI Top of The Agenda at US, EU Summit Talks

A 24-page draft joint statement focuses on AI algorithm standards, export controls and China’s non-market practices and disinformation

6 hours ago