Samsung Electronics on Wednesday announced plans to invest $230 billion to build the ‘world’s largest’ chip center in South Korea comprising five new memory and foundry fabs.
The investments will be made through 2042.
The move aligns with the South Korean government’s ambition to establish a mega semiconductor hub in Yongin, on the outskirts of Seoul, to shore up the domestic semiconductor production line and secure the supply chain.
“It is expected that we would invest about 300 trillion KRW ($230 billion) in the chip-making cluster through 2042,” a spokesperson at Samsung said in an emailed statement to news reporters.
Seoul’s $422 billion investment
Additionally, on Wednesday, South Korea’s Ministry of Trade, Industry and Energy revealed that it will invest $422 billion by 2026 to promote six core technologies: semiconductors, electric vehicle batteries, autonomous vehicles, robots, displays, and biotechnology. $260 billion will be specifically earmarked for the chip space to develop system semiconductors by 2026, considering “semiconductors as strategic economic support and national security assets.”
Mega semiconductor hub
The mega semiconductor hub will have a whole value chain of chip-making processes from memory, foundry, and design houses to material suppliers, attracting 150 domestic and global fabless companies and advanced chip materials and equipment makers. The South Korean government aims to foster high-tech industries by working with corporations and intends to offer expanded tax breaks for companies in the advanced tech space.
Japan has also been partnering with global semiconductor and chip equipment makers to revive its own semiconductor industry. Taiwan Semiconductor Company (TSMC), the world’s largest contract chip producer, has been expanding its manufacturing footprint both domestically and overseas in the U.S. and Japan.
Samsung already operates a foundry chip facility in Austin, Texas, and has recently announced additional investment plans for the U.S. and Texas. It plans to build a manufacturing facility in Taylor, Texas, earmarking $17 billion for the project and is also considering investing $200 billion to set up 11 more chip plants in the state.
Separately, Korea’s Ministry of Science and ICT announced last month it would boost its AI chip industry with $642.5 million.