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Samsung Electronics will invest $230 billion over the next 20 years chip-making “mega cluster,” which will be established in Gyeonggi Province by 2042.
Samsung’s five new semiconductor plants would anchor South Korea's national project to build the world’s largest semiconductor manufacturing base.
The semiconductor cluster is part of broader government plans to promote six key technology industries crucial for South Korea’s export-dependent economy.
Apart from semiconductors, the other industries include rechargeable batteries, electric vehicles, robotics, displays, and biotechnology.
According to South Korea’s Ministry of Trade, Industry, and Energy, the project aims to lure 150 other companies that produce materials and components or design high-tech chips, The government hopes to draw $422 million in corporate investment on those projects through 2026.
Samsung’s new plants will be located near its existing domestic factories and will produce both computer memory chips used for storing data and higher-margin logic chips designed to perform a broader range of functions, the company said.
Samsung is trying to expand its presence in advanced chips, anticipating that demand will soar in coming years with the adoption of new technologies such as 5G wireless networks, artificial intelligence, and self-driving cars.
