Samsung Electronics to invest $230 billion to build world’s largest chip-making base

Samsung Electronics to invest $230 billion to build world’s largest chip-making base

In line with the country's efforts to boost the chip industry, South Korea's Samsung Electronics said it would invest some $230 billion over the next 20 years to develop what could be the world's largest chip-making base.

The investment is part of Seoul's plan to expand tax breaks and support to increase the competitiveness of high-tech sectors, including chips, displays and batteries.

Other countries are boosting their domestic chip industries, including the US, which announced in February the details of its CHIPS Act that will offer billions of dollars in subsidies for chipmakers that invest in the country.

The economic battlefield, which began with chips, has expanded, and countries are providing large-scale subsidies and tax support. We need to support private investments in order to achieve further growth. The government must provide location, R&D, manpower and tax support, according to On Samsung Electronics President Yoon Suk Yeol, as reported by Reuters.

Over the five years, Seoul will provide huge financing for research and development in strategic technologies, such as artificial intelligence, chip packaging, electricity and water infrastructure, as well as private-sector investment.

The South Korean government said in the beginning of the year that it could increase the tax deduction rate for large corporations in the areas of facility investments in chips and other strategic technologies from 8 to 15 percent.

The home country of the world's two largest memory chip makers, Samsung Electronics and SK Hynix, South Korea aims to become a major player in the non-memory chip sector, which is currently dominated by chip-makers Taiwan Semiconductor Manufacturing and Intel.