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Samsung to invest $230m in semiconductor manufacturing
Korean technology giant Samsung is investing $230 million in semiconductor manufacturing. This amount will be used to build the world’s largest microchip production complex near Seoul.
The project is strategically important to Korea and is expected to last 20 years. The total investment is $420 million. The government will cover the rest. It is planned that the giant cluster will include five plants for the production of Samsung semiconductor products. In addition, the government intends to attract other developers who produce high-tech chips and the materials needed to make them. The number of such companies could reach around 150. The project is expected to be fully operational by 2042.
Samsung is keen to expand its own production to strengthen its position in the global market. In addition, according to analysts, the demand for semiconductors should increase significantly in the next few years. The main driver of increased interest in products will be the emergence of new technologies and the expansion of existing ones, such as unmanned transportation, 5G networks, or solutions based on artificial intelligence.
This project is also important for the Korean government regarding the country’s competitiveness. Countries such as China, Japan, and the US are actively increasing the production of semiconductor products. The authorities fully support the local industry by giving companies incentives and subsidies to open new plants. For example, in 2022, the US passed a law providing billions of dollars in investment in the sector. In addition, the country has the initiative to attract foreign investment.
Support from the Korean government
According to the Korean government, the authorities are ready to provide tax support to representatives of the advanced technology sector. In addition, the officials intend to allocate about 19 billion dollars for research activities in the industry of strategically essential technologies, including artificial intelligence. The support program is designed for five years. By the end of 2023, the government will invest $76 million in infrastructure development for industrial complexes. As part of this program, new power grids and a water supply system will be built.
In January this year, the Korean authorities were considering increasing the tax on investments in chip production and other technologies. The rate was planned to be increased from 8 percent to 15 percent; the changes would only affect large corporations. In addition to semiconductors, electric vehicles, and robotics, the government is focused on supporting the biotechnology sector. It is important for economic growth and is included in Korea’s 2026 investment strategy.