Samsung to invest over 200 billion Euros in semiconductor hub push

Samsung to invest over 200 billion Euros in semiconductor hub push
Samsung has confirmed that it will invest around 300 trillion won (216.2 billion Euros) over 20 years, as part of a push by the South Korean government to develop a semiconductor hub in the country.

The investment will be put towards the construction of five semiconductor chip factories, with the official plan offering incentives to companies in high-tech industries such as expanded tax breaks and infrastructure support.

The South Korean government plans to secure around 550 trillion won in private-sector investment, as semiconductor production ramps up around the world in Europe and North America.

The government plan echoes that of Taiwan’s ‘clustering’ effect, incorporating a trifecta of science parks to form a cluster that attracts companies both upstream and downstream in the supply chain.

Samsung also pledged to invest 193 billion Euros into the semiconductor industry over the course of three years in 2021, marking a huge step up in investment over the next two decades.

The announcement follows heightening tensions between the US and China that has sent shockwaves for the semiconductor business around the globe. The US announced in October that licenses would be required for companies exporting chips to China using US tools or software, no matter where they are made.

The Netherlands also said last week that it was planning to put restrictions on its microchip technology exports to “protect national security.”

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