South Korea: The world’s largest electronics maker, Samsung, says it will contribute almost $230.8 billion over a 20-year period to the South Korean government’s effort to create a major semiconductor hub there.

By 2042, a chip-making mega cluster will be developed in Gyeonggi Province, with five new Samsung semiconductor plants serving as its cornerstone. According to the South Korean Ministry of Commerce, Industry, and Energy, it would endeavour to draw 150 additional businesses that make materials and components or create high-tech chips.

As per Samsung, the new plants would be close to its current domestic manufacturing and will make both higher-margin logic chips with a wider range of uses and computer memory chips used to store data.

According to the official plan, businesses in high-tech sectors will receive perks including increased tax savings and infrastructure support. The US and China are embroiled in a nasty trade war over semiconductors, which power everything from mobile phones to military hardware.

No matter where in the globe the chips are produced, Washington stated in October that it would want licences from businesses exporting them to China using US equipment or software. The South Korean trade ministry voiced worries about the US semiconductor policy around the same time.

The ministry stated the Chips Act may create business uncertainty, infringe enterprises’ management and technology rights as well as make the United States less attractive as an investment choice”. China has frequently referred to the US as a “tech hegemony” in response to export restrictions put in place by Washington. SK Hynix and other significant microprocessor producers are based in South Korea.

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