March 16, 2023
Samsung Electronics has announced a $230 billion investment in a massive semiconductor manufacturing facility in Gyeonggi province, which is part of the Seoul Metropolitan area.
Samsung and South Korean government announced plans to build the world’s largest new “high-tech system semiconductor cluster,” according to President Yoon Suk Yeol. He stated that it would be based on “large-scale private investment amounting to nearly 300 trillion Korean won.” According to a government statement, the chip cluster would be located in Gyeonggi province, which is part of the Seoul Metropolitan area, and the total investment would take about 20 years to complete.
The investment will be used to build five chip factories, according to the company. According to South Korea’s Ministry of Trade, Industry, and Energy, this new mega cluster will be the foundation of the country’s semiconductor ecosystem. According to the statement, which did not provide further details, the country will revise its Industrial Technology Protection Act to protect intellectual property.
To attract companies in high-tech industries, the plan includes incentives such as tax breaks and infrastructure support. The government hopes to attract $480.9 billion in total private-sector investment and compete in advanced industries with other countries.
Concerns about global supply chain stability have arisen as a result of the concentration of chip manufacturing in South Korea and Taiwan amid political and economic tensions. As a result, the move comes as major players ramp up efforts to boost onshore semiconductor manufacturing, with countries such as the United States, China, and the Netherlands imposing restrictions to protect national security.
