Samsung to invest $230 billion in the next 20 years for the world’s largest chip-making base

South-Korean tech company Samsung, has announced plans to invest $230 billion in the next two decades to create the largest chip-making base in the world. The chip-making base will be situated in South Korea, and it will be the largest one globally. This base is being launched as part of the efforts by the South Korean government to support the national chip sector.

Samsung to invest $230B in a chip-making base

This initiative will cost Samsung around 300 trillion won. The project is part of a 550 trillion won investment plan by the private sector that was announced by the government. The South Korean government is using this initiative to increase tax breaks and boost competition in high-tech industries.

Some of the key focus areas through this initiative are those that involve chips, batteries, and displays. The South Korean government is attempting to boost its presence in the chip industry to boost its competitiveness in an area that is attracting much global interest.

Besides South Korea, the other country that has also shown a massive interest in growing the domestic chip industry is the United States. Last month, the US published the CHIPS Act that offered billions of dollars worth of subsidies to chipmakers who invested in the country.

On Wednesday, the South Korean President, Yoon Suk Yeol, explained that this initiative was part of the country’s plans to boost its presence in the chip industry. “The economic battlefield, which recently began with chips, has expanded… countries are providing large-scale subsidies and tax support,” the president said.

He further added that it was important to support private investments to ensure that the sector supported growth. The president also said that part of what the government needed to do to support the chip industry was to offer location, R&D, manpower, and tax support to those who invested in this industry.

Samsung is leading the way in chip manufacturing

The manufacturing additions that have been announced by Samsung to support this initiative include five chip factories. The tech company is also looking to attract up to 150 materials, parts and equipment makers. It will also engage in research and development for semiconductors near Seoul.

This initiative will not only be supported by the private sector, as the government has also announced it will set aside at least 25 trillion won for R&D in technologies such as artificial intelligence. Samsung will also offer around 360 billion won for chip packaging, while around 100 billion won will go towards water infrastructure and electricity.

Early this year, the South Korean government proposed increasing the tax deduction rate for investment in chips and other technologies. The rate was raised from 8% to 15% for large companies.

South Korea boasts of being the home to two of the largest memory chip manufacturers: Samsung Electronics and S Hynix Inx. The country is also planning to boost the stability of its supply chain to emerge as a leading player in the non-memory chip sector. The sector is currently dominated by companies such as Intel and Taiwan Semiconductor Manufacturing Co Ltd.