South Korea has announced plans to build the world’s largest chip center with an investment of $230 billion from Samsung Electronics. The facility will be located in the Gyeonggi province, which is part of the Seoul Metropolitan area, and the total investment will be completed in about 20 years. The move comes as global manufacturers continue to face a shortage of computer chips due to increased demand and supply chain disruptions.
The chip center, which will be a new “high-tech system semiconductor cluster,” will be connected to existing memory semiconductor manufacturing complexes. The government has also stated that it will revise its Industrial Technology Protection Act to protect intellectual property.
Samsung had already announced plans to invest more than $350 billion in its businesses and create tens of thousands of new jobs through 2026, primarily in core businesses such as chipmakingSamsu and biopharmaceuticals. However, it is unclear whether the previous investment overlaps with the one announced by the government.
According to Sanjeev Rana, a CLSA analyst, Samsung’s investment plans over the next two decades average about 15 trillion won annually, which is in line with market expectations.
Samsung, best known for its electronics division, has been increasingly focusing on semiconductor production in recent years as demand for computer chips continues to rise. The company’s investment in the chip center is expected to strengthen its position as a leading producer of semiconductors.
The construction of the chip center is a significant step for South Korea, which is one of the world’s largest producers of semiconductors. The investment from Samsung is expected to create jobs and stimulate economic growth in the region.
In conclusion, the building of the world’s largest chip center in South Korea with an investment from Samsung Electronics is a significant development for the country’s semiconductor industry. With the continued global demand for computer chips, this investment is expected to strengthen South Korea’s position as a leading producer of semiconductors and contribute to the country’s economic growth.