Seoul, March 15 (BNA): South Korean tech giant Samsung Electronics (005930.KS) expects to invest $230 billion over the next 20 years to develop what the government has called the world’s largest chipmaking base, in line with efforts to boost the national chip industry.
Samsung’s roughly 300 trillion won project is part of a 550 trillion won private sector investment plan unveiled by the government, according to Reuters.
Seoul’s strategy aims to expand tax breaks and support increased competitiveness of high-tech sectors, including those that include chips, displays and batteries.
The plans come as other countries offer steps to boost domestic chip industries, including the United States which last month released details of its CHIPS Act, which provides billions of dollars in subsidies to chip makers that invest in the country.
President Yoon Sok-yeol said that the economic battlefield, which recently started with chips, has expanded countries providing subsidies and tax support on a large scale.
We must support private investment to ensure further growth, and the government must provide on-site, research and development, manpower and tax support, added Yul.
Samsung’s manufacturing additions will include five chip factories and attract as many as 150 material, parts and equipment manufacturers, fables-free chip makers and semiconductor research and development organizations near Seoul, the Ministry of Industry said in a statement.
In addition to private sector investment, the government will allocate 25 trillion won or more over five years for research and development of strategic technologies such as artificial intelligence.
It will provide about 360 billion won for developing foil packaging, and about 100 billion won for electricity and water infrastructure this year for industrial parks.
The government in January proposed raising the tax rebate rate for enterprise investments in chips and other strategic technologies from 8% to 15% for large firms.
Separately, Samsung Electronics, the Samsung Display unit, and subsidiaries Samsung SDI (006400.KS) and Samsung Electro-Mechanics (009150.KS) said they plan to invest 60.1 trillion won in the next 10 years in areas outside the Seoul metropolitan area to develop the chip. Packaging, displays and battery technology.
South Korea, home to the world’s two largest memory chip makers, Samsung Electronics and SK Hynix Inc. (000660.KS), to improve supply chain stability and become a major player in the field of non-memory chips.
NAA