​Samsung has announced a US$230 billion investment plan to open five processor plants in South Korea over the next 20 years. This Asian country has a program where it offers generous subsidies and tax breaks to companies that set up chip manufacturing plants.
Samsung is the world’s largest manufacturer of smartphones, televisions and memory chips. The company has pledged to open five new processor factories, also promoting a government program in Seoul that hopes to attract more than $450 billion in investment for processor manufacturing in the country.
Other major companies such as SK Hynix will also benefit from this program. There will be subsidies, but also tax exemptions. The goal is to maximize the production of high-tech components.
Manufacturing processors outside of China is becoming increasingly important, with several companies announcing investments in South Korea, the United States and Western Europe. Tensions between the US and China have led to supply issues and restrictions on where Chinese-made processors can go. And the US imposed a ban on the export of technology to China.
Processor plants are one of the biggest investments you can make. For example, the estimated cost of the factory that Samsung will open in Texas has increased from 17 to 25 billion dollars. Costs have increased due to inflation, as well as due to the increase in the price of construction materials.
Sources: BBC, Reuters
Source: Hot News
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