Samsung intends to invest approximately 300tn won ($230.8bn; £189.6bn) over the next 20 years in the South Korean government’s initiative to establish a mega semiconductor hub in the country.
This will be used to construct five semiconductor factories, the company informed.
Samsung is the largest producer of memory chips, smartphones, and televisions on the globe.
Companies in high-tech industries will be offered incentives such as expanded tax rebates and infrastructure support under the official plan.
On Wednesday, South Korea’s Ministry of Trade, Industry, and Energy said the huge cluster will be the semiconductor ecosystem’s hub.
It stated that it intended to secure approximately 550tn won in private-sector investment. And “leap forward as a leading nation amid fierce global competition in advanced industries.”
“Major players are stepping up efforts to increase domestic semiconductor manufacturing.”
“It wants to emulate to some degree Taiwan’s clustering effect, where the trifecta of science parks… form a massive cluster that has attracted numerous other companies,” he said.
Semiconductors, which power smartphones and military equipment, are at the center of the US-China debate.
Washington announced in October that it would require licenses from companies exporting semiconductors to China using US tools or software, regardless of where the chips were manufactured.
Last week, the Netherlands said they would limit exports of their “most advanced” microchip technology for national security.
Approximately at the same moment, South Korea’s trade ministry expressed concern over the United States semiconductor policy.
According to the ministry, the Chips Act “could increase business uncertainty, violate companies’ management and technology rights, and make the United States a less desirable investment destination.
In response to U.S. export controls, China has frequently referred to the United States as a “tech hegemony.”
SK Hynix is one of South Korea’s other main microprocessor manufacturers.
