Hong Kong/Seoul(CNN) South Korea says it will create an huge facility to make computer system chips in higher Seoul, with about $230 billion in investment from memory chip giant Samsung Electronics.
The plans have been announced by President Yoon Suk Yeol on Wednesday and confirmed by the electronics giant.
“We will create the world’s biggest new ‘high-tech method semiconductor cluster’ in the Seoul Metropolitan region primarily based on big-scale private investment of nearly 300 trillion Korean won,” he mentioned.
“In addition, we will develop the ‘semiconductor mega cluster’ to the world’s biggest in connection with the current memory semiconductor manufacturing complexes.”
A government statement sent to CNN mentioned the chip cluster would be positioned in Gyeonggi province, which is component of the Seoul Metropolitan region, and the total investment would be completed in about 20 years.
In order to guard intellectual home, the nation will revise its Industrial Technologies Protection Act, according to the statement, which did not present further information.
Final May possibly, Samsung (SSNLF) outlined a strategy to pour far more than $350 billion into its companies and build tens of thousands of new jobs by way of 2026. It mentioned it would mostly invest in core companies such as chipmaking and biopharmaceuticals.
It wasn’t right away clear whether or not the previously announced investment would overlap with the 1 announced Wednesday by the government.
Samsung is most effective recognized for its electronics division, with its common smartphones and televisions. In current years, the corporation has leaned additional into its part as a provider of semiconductors as producers about the planet endure from shortages.
An aerial view of Samsung Electronics’ chip production plant at Pyeongtaek, South Korea on September 7, 2022.
Memory chips, which have proved to be a crucial moneymaker for Samsung, will continue to be a concentrate region with additional investment planned, according to the firm.
In the region of higher-finish computer system chips, Samsung competes straight with Intel (INTC) and Taiwan’s TSMC (TSM).
The vast majority of the world’s sophisticated microchips are produced in just two locations, Taiwan and South Korea. Taiwan’s market is bigger and far more dominant, one thing South Korea is keen to challenge.
The concentration of so considerably important chip manufacturing in just two locations has triggered issues more than worldwide provide chain stability particularly as South Korea and Taiwan are each militarily threatened by neighbors, North Korea and China respectively.
More than the final handful of years, significant economies express concern about losing access to semiconductors, specifically as political and financial tension has escalated amongst China and the United States.
Governments, which includes Washington, and significant corporations like Apple have asked semiconductor corporations to localize their operations.
CNN’s Michelle Toh contributed reporting
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