(SEOUL) South Korea on Wednesday announced plans to build the world’s largest microchip manufacturing center, with private investment of US$230 billion, mainly from Samsung Electronics.
South Korea will “build the world’s largest semiconductor center around the capital with massive private investment worth 300 trillion won (CAD 320 billion),” President Yoon said. Suk Yeol at an economic policy meeting.
“Speed is important. The government will do its best to complete the project,” he added, according to a transcript provided by his office.
Samsung said in a statement sent to AFP that it plans to invest 300 trillion won in the consolidation area over the next two decades.
South Korea’s industry ministry said the project is expected to be completed by 2042.
The South Korean government plans to invest heavily in six key technologies, including chips, displays and batteries, all areas where the country’s tech giants are already well established.
The vast majority of the world’s most advanced microchips are made by two companies: Samsung and the Taiwanese company TSMC.
In May 2022, Samsung announced a massive investment plan of 450 trillion won over the next five years to become a leader in key industries ranging from semiconductors to biologics.
Securing the supply of high-tech semiconductors has become a crucial issue internationally, and the United States and China have engaged in a fierce battle for control of this market.
Last May, US President Joe Biden embarked on a tour of South Korea where he visited Samsung’s sprawling chip factory in Pyeongtaek, bearing witness to their major geopolitical importance.