Samsung Electronics to invest $230 billion by 2042 to build its local chip manufacturing base
SEOUL: Samsung Electronics Co Ltd said on Wednesday it will invest about 300 trillion won ($230 billion) by 2042 to develop what the government called the world’s largest chip maker, under efforts to boost South Korea’s chip industry.
The sum makes up the bulk of the 550 trillion won in private sector investment announced by the government on Wednesday under a strategy to expand tax breaks and infrastructure support to boost the competitiveness of high-tech industries including chips, displays and batteries.
The Ministry of Trade, Industry and Energy said in a statement that Samsung’s production additions include five chip factories and will attract up to 150 materials, parts and equipment manufacturers, fairy chip makers and semiconductor research and development organizations.
Other countries have announced plans to bolster their domestic chip industry, including the United States, which last month unveiled details of its CHIPS Act, which offers billions of dollars in subsidies to chipmakers that invest in the country.
South Korea, home to the world’s two largest memory chip makers, Samsung Electronics and SK Hynix Inc, is looking to improve supply chain stability to become a major player in the non-memory chip sector, which is currently dominated by chipmakers such as Taiwan Semiconductor Manufacturing. Co Ltd and Intel Corp.
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