Samsung Plans to Invest $230 Billion to Build World’s Largest Semiconductor Production Hub
On Wednesday, Samsung Electronics announced plans to invest $230 billion over the next two decades in a massive South Korean national initiative to construct the world’s largest semiconductor production hub near the capital city, Seoul. The goal is to establish a “mega cluster” for chip-making in Gyeonggi Province by 2042, featuring five new semiconductor factories constructed by Samsung and 150 additional businesses involved in producing materials, components, or designing advanced chips, according to the Ministry of Trade, Industry, and Energy of South Korea.
Samsung’s new plants will be built near its existing domestic factories, manufacturing both computer memory chips for data storage and higher-value logic chips capable of performing a wider range of functions. As a leader in the global memory industry, Samsung is striving to increase its footprint in advanced chips, anticipating a surge in demand in the near future as new technologies like 5G wireless networks, artificial intelligence, and self-driving vehicles gain wider adoption.
The semiconductor cluster is one of the components of the South Korean government’s broader plans to encourage six primary technology industries, including rechargeable batteries, electric vehicles, robotics, displays, and biotechnology. The government aims to attract 550 trillion won ($422 million) in business investments for these initiatives until 2026.
South Korea’s strategy emerges as other technology giants, such as the United States, Japan, and China, are increasing their domestic chip production, utilizing protectionist tactics, tax incentives, and substantial subsidies to attract investments.
In conclusion, Samsung’s investment of $230 billion to build the world’s largest semiconductor production hub will create new semiconductor factories and attract 150 businesses to produce materials, components or design advanced chips in the Gyeonggi Province near Seoul by 2042. As a leader in the global memory industry, Samsung is striving to expand its footprint in advanced chips, anticipating a surge in demand in the near future. This initiative is one of the South Korean government’s broader plans to encourage six primary technology industries, attracting 550 trillion won ($422 million) in business investments until 2026.