Samsung Electronics plans to invest 300 trillion won, or $230 billion, in a new semiconductor manufacturing complex in South Korea. According to the South Korean government, this complex will become the largest chip production facility in the world.
According to a Samsung spokesperson, the investment will be made by 2042 and the company’s chip production complex will be built outside of the South Korean capital, Seoul.
South Korea’s quest for leadership in critical technologies
The South Korean government wants to partner with the country’s biggest tech companies to make big advances in critical areas. According to the government, the private sector will invest 550 trillion won in chip, display, battery and electric vehicle sectors by 2026.
Despite these sectors, the government’s main focus will be on semiconductors; Critical and important parts that are used in various products from smartphones to cars have also become an important topic. Along with South Korea, the United States has also invested heavily in chips.
The South Korean government wants to connect the chip production facilities of various companies, including Samsung, to build the world’s largest facility. The overall idea of the government is to connect the different parts of the semiconductor supply chain from design to manufacturing.
Samsung is the largest manufacturer of memory chips in the world; Semiconductors used in various devices from laptops to servers. In addition to Samsung, South Korea is also home to SK Hynix; The second largest manufacturer of memory chips in the world.
The government’s support for Samsung allows the tech giant to step up its competition with TSMC, the world’s largest chip maker. TSMC produces most of the world’s advanced chips for companies like Apple. We have to wait and see what benefits the government’s support for Samsung and of course the company’s 230 billion dollar investment will bring to it. The announcement of the investment has increased the value of Samsung shares.
