Samsung Electronics has announced plans to invest around $230 billion over the next two decades in South Korea to build five new memory and foundry fabs.
The investments will be made through 2042, securing the country’s domestic semiconductor production line and supply chain.
The mega semiconductor hub will have a value chain of chip-making processes from memory, foundry, and design houses to material suppliers, and attract 150 domestic and global fabless companies and advanced chip materials and equipment makers.
Separately, the Korean government has earmarked $260 billion specifically for the chip space to develop system semiconductors by 2026, saying it considers semiconductors as strategic economic support and national security assets.
South Korea is not alone in expanding its own manufacturing operations. Japan has been partnering with global semiconductor and chip equipment makers to revive its semiconductor industry, and Taiwan Semiconductor Company (TSMC) has been expanding its manufacturing footprint both domestically and overseas in the US and Japan.
South Korea intends to offer expanded tax breaks for companies in the advanced tech space to foster high-tech industries by working with corporations.
Samsung already operates a foundry chip facility in Austin, Texas, and has recently announced additional investment plans for the US: $17 billion earmarked to build a manufacturing facility in Taylor, Texas. It is also considering investing $200 billion to set up a further 11 chip plants in Texas.