The South Korean government is pushing to create a massive semiconductor hub, and the electronics giant Samsung says it will invest about $230.8 billion over 20 years.
Five chip factories will be built with this money, the company told the BBC.
In terms of memory chips, smartphones, and TVs, Samsung is the industry leader.
“The mega cluster will be the key base of our semiconductor ecosystem,” South Korea’s Ministry of Trade, Industry and Energy said in a statement.
According to Paul Triolo of the international advisory firm Albright Stonebridge Group, major players are stepping up their efforts to increase onshore manufacturing in the semiconductor sector at the same time as South Korea made this decision.
“It wants to emulate to some degree Taiwan’s clustering effect, where the trifecta of science parks… form a massive cluster that has attracted numerous other companies, both upstream and downstream in the supply chain,” he said.
A bitter trade war between the US and China is centered on semiconductors, which power everything from mobile phones to military weapons.
According to the ministry, the Chips Act “could deepen business uncertainties, violate companies’ management and technology rights as well as make the United States less attractive as an investment option
Author-Roberta Appiah
