ISLAMABAD/SOUTH KOREA: The world’s largest electronics maker, Samsung, has said it will invest almost 300 trillion won ($230.8 billion) over the next 20 years in the South Korean government’s planned plant semiconductor-making project.
The tech giant told the BBC that the amount would be spent building five chip factories. Samsung is the largest producer of memory chips, cell phones, and TVs.
According to the official proposal, under the government project, businesses in high-tech sectors will receive perks, including increased tax savings and infrastructure support.
According to a statement released Wednesday by the country’s Ministry of Commerce, Industry, and Energy, the mega cluster will serve as the cornerstone of South Korea‘s semiconductor ecosystem.
To “push forward as a leading country in the middle of tough global competition over sophisticated sectors,” it aimed to snag some 550 trillion won in private sector investment. According to Paul Triolo of the international consultancy company Albright Stonebridge Group, “key players are speeding up efforts to enhance onshore manufacturing in the semiconductor sector” due to South Korea’s action.
The trinity of research parks in Taiwan comprises a significant cluster that has drawn numerous additional businesses upstream and downstream in the supply chain. “It wants to mimic that somewhat,” he said.
The US and China are embroiled in a nasty trade war over semiconductors, which power everything from mobile phones to military weapons. No matter where in the globe the chips are created, Washington stated in October that it would want licenses from businesses exporting them to China using US equipment or software.
To safeguard its security, the Netherlands announced last week that it would limit exporting its “most advanced” microprocessor technology. The South Korean trade ministry voiced worries about the US semiconductor policy around the same time.
According to the ministry, the Chips Act “may exacerbate economic uncertainty, infringe companies’ management and technology rights, and lessen the allure of investing in the United States.”
China has frequently referred to the US as a “tech hegemony” in response to export restrictions put in place by Washington. SK Hynix and other significant microprocessor producers are based in South Korea.
