Samsung to build world’s largest chip cluster in South Korea
Seoul announced it would build the world’s biggest chip hub, largely using around 300 trillion won (about $230 billion or €220 billion) of private investment from electronics giant Samsung over the next 20 years.
The chip manufacturing “mega cluster” will be built at various locations in Gyeonggi Province by 2042.
The center will be anchored by five new semiconductor factories built by Samsung.
What is the plan?
The South Korean government is looking to invest heavily in six areas of technology, including chips, displays, rechargeable batteries, electric vehicles, robotics and biotechnology.
While the country is well established in these sectors, the government is hoping to meet the growing demand due to the adoption of new technologies such as 5G wireless networks, artificial intelligence and self-driving cars.
According to President Yoon Suk-yeol, South Korea “will build the world’s largest-scale semiconductor cluster in capital areas using massive private investment worth 300 trillion won.”
Speaking at an economic policy meeting, Yoon said: “Speed is important. The government will do its best to carry out the cluster project.”
The semiconductor center will aim to attract another 150 companies that will produce materials and components or design high-tech chips, according to South Korea’s Ministry of Commerce, Industry and Energy.
Samsung’s new factories will be located close to its existing domestic factories. They will make computer memory chips used for data storage and higher margin logic chips made to perform a wider range of functions, Samsung said.
With tech powerhouses including the US, EU, Japan and China building their domestic chip manufacturing to roll out protectionist measures, tax cuts and subsidies to lure investors, South Korea has come up with its own bid to boost its already strong market share. .
Source: DW
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