Samsung Stumps Up $230 Billion for South Korea Expansion Plans, Five New Chip Plants in the Pipeline

[T0@st]

Samsung Electronics has announced ambitious long term plans to expand its operation in South Korea. The company is set to invest around $230 billion in new fabrication facilities, with five locations marked for development in Yongin, a city located within the Seoul Capital Area. The five new factories with mixed foundry and memory manufacturing purposes, will form part of the South Korean government's intentions to assemble a mega semiconductor hub in the region.

South Korea's Ministry of Trade, Industry and Energy (MOTIE) on Wednesday revealed its intent to invest $422 billion by 2026 to boost production of six core technologies: semiconductors, electric vehicle batteries, autonomous vehicles, robots and displays. The government provided a breakdown of the total budget, and $260 billion has been allocated for the country's chip space to develop system semiconductors into the year 2026.



It appears that the country is strengthening its domestic semiconductor production line in order safeguard internal supply chains and to stay competitive with similar efforts around the globe. Other countries such as China, Taiwan, Japan, and the U.S. are boosting domestic chip manufacturing in efforts to mitigate recent fluctuations in global supply chains. The after effects of the pandemic, and rising tensions between political giants have been cited as key problems faced by international electronics manufacturers.



The South Korean government's statement outlines ambitions to foster high-tech industries in the proposed mega hub region. It seeks to attract corporations by offering expanded tax breaks in the native advanced technology space. Samsung has been expanding it foreign operations, most notably with an in-progress North American semiconductor fabrication facility located in Taylor, Texas. Will the South Korean Government's latest domestic plan have any impact on the tech giant's plan to secure strategic positions around the world? It seems that Samsung has an ample budget and plenty of time to make its own choices, but local government incentives could result in a slowdown of overseas efforts in the long term.

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[kondamin]

If I were samsung i would try and get something going in an other region so the company wouldn't be gone the moment something bad happens on the peninsula.
Mt Peaktu going boom or a series of earth quakes and they can forget producing anything for months.

 

[Daven]

If I were samsung i would try and get something going in an other region so the company wouldn't be gone the moment something bad happens on the peninsula.
Mt Peaktu going boom or a series of earth quakes and they can forget producing anything for months.

Actually getting the whole world dependent on your nation’s production would force everyone to jump to Korea’s defense. Same goes for Taiwan.

 

[Vayra86]

If I were samsung i would try and get something going in an other region so the company wouldn't be gone the moment something bad happens on the peninsula.
Mt Peaktu going boom or a series of earth quakes and they can forget producing anything for months.

That's not how you get those sweet sweet tax cuts and bags of money though.

 

[kondamin]

Actually getting the whole world dependent on your nation’s production would force everyone to jump to Korea’s defense. Same goes for Taiwan.

That works for military threats not for natural disasters.
The US navy won't be able to help much when 500 billion worth of Fab lie in rubble thanks to an earth quake and fires.

I think samsung should use that 250billion to build 2 fabs on the moon and one on mars

 

[bonehead123]

And just think, if they had started this 10 years ago like they should have, they could have saved themselves like $50-80B, and we could all be using $300 flagship phones and ridin around in self-driving cars right now, and not have to worry about the other stuffs...

 

[Prima.Vera]

Those are Government's money, not Samsung's, relax...