The world’s largest maker of electronics, Samsung, says it will contribute almost 300 trillion won ($230.8 billion; £189.6 billion) over a 20-year period to the South Korean government’s effort to create a major semiconductor hub there.
The South Korean government announced on Wednesday that it would invest billions in a variety of industries, including biotechnology, batteries, robots, and electric vehicles. The blueprint includes the establishment of centers hosting mega-plants to produce semiconductors, as well as design firms and material suppliers to reinforce the country’s own supply chain. Five chip facilities would be built with this money, the BBC reported.
Samsung is one of the largest producers of memory chips, cell phones, and TVs worldwide. According to the official proposal, businesses in high-tech sectors will receive perks including increased tax savings and infrastructure support. The backbone of such an effort would be Samsung’s investment.
The US and China are embroiled in a nasty trade war over semiconductors, which power everything from mobile phones to military weapons. Washington stated in October that it will want licenses from businesses sending chips to China created with American equipment or software, regardless of where they were manufactured.
The Netherlands announced last week that in order to safeguard national security, it likewise intended to impose limitations on the export of its “most advanced” microprocessor technology.
The South Korean trade ministry voiced worries about the US semiconductor policy around the same time. The ministry stated the Chips Act “may create business uncertainty, infringe enterprises’ management and technology rights as well as make the United States less attractive as an investment choice”.
