Samsung will be working on a new chip production site in South Korea in the next two decades. The company will invest a total of 300 trillion won in this, the equivalent of approximately 214 billion euros. The plans are part of South Korean private sector investment plans.
Samsung will make the investments in its new production location in the coming years until 2042, reports CNBC, among others. The campus will be located just outside the South Korean capital Seoul and will eventually consist of five different chip factories. Exactly what kind of chips will be produced has not yet been stated.
According to South Korea’s Ministry of Industry, the campus should also attract up to 150 manufacturers of materials, parts and equipment, in addition to fabless chip designers and semiconductor research organizations. The goal, according to the government, is to build a “semiconductor megacluster” by connecting different parts of the chip supply chain, from design to production.
The plans are part of South Korean private sector investment plans in chips, displays, batteries and other tech markets. Companies will jointly invest up to 395 billion euros in this until 2026. The government of that country will expand tax benefits and other support to support this. In January, South Korea already increased the tax deduction for chip investments from 8 to 15 percent.
The government of South Korea calls Samsung’s new location the “largest chip manufacturing base in the world.” The plans follow chip laws from several other regions. The US and Europe both invest in their chip sectors and allocate billions of dollars in subsidies. Taiwan also offers tax breaks to chipmakers.