Samsung has announced plans to invest a massive $230 billion in South Korea over the next two decades to build the world’s largest chip factory. The move is aimed at boosting the country’s chip industry and expanding tax breaks and support for high-tech sectors like chips, displays, and batteries. Here are the details…

Samsung Electronics to invest $230 bln through 2042 in South Korea for World’s Largest Chip Factory

As part of this investment, Samsung will add five chip factories that will attract up to 150 materials, parts, and equipment makers, fabless chipmakers, and semiconductor research and development organizations near Seoul. The South Korean government will also invest 25 trillion won over five years for research and development in strategic technologies like artificial intelligence, while providing about 360 billion won to develop chip packaging and about 100 billion won in electricity and water infrastructure this year for industrial complexes.

This investment is in response to other countries taking steps to bolster their domestic chip industries, such as the United States’ CHIPS Act, which offers billions of dollars in subsidies for chipmakers investing in the country. Samsung’s investment plan will strengthen South Korea’s position in the global semiconductor industry, and help the country become a major player in the non-memory chip field. This is important for the country as it seeks to improve supply-chain stability and become self-sufficient in key technologies.

Samsung’s investment plan also includes several of its affiliates, including Samsung Display, Samsung SDI, and Samsung Electro-Mechanics. These companies plan to invest 60.1 trillion won over the next 10 years in regions outside the Seoul metropolitan area to develop chip packaging, displays, and battery technology. This move will help to diversify the country’s technology manufacturing base and expand its reach beyond Seoul.

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