As per reports, South Korea plans to spend US$450 billion on semiconductors in logic chip manufacturing and R&D by 2030. It is not yet clear how large the subsidy will be, but these funds will include a mixture of government support programs, tax incentives and corporate investment commitments.
South Korea, China, and the United States all perceive semiconductors as a strategic weapon in wealth creation and global security, but it is worth noting that the US government’s “war” funding is set at a benchmark of $50 billion. European politicians also view cutting-edge chip manufacturing as a strategy, but are working to revitalize leading European chips.
Samsung Electronics and SK Hynix Inc. will make this investment under the leadership of the national blueprint drawn up by the government of President Moon Jae-in. The plan involves another 151 companies with names, including foundries, fabless chip companies, manufacturing equipment manufacturers and material suppliers.
Samsung said it plans to invest 171 trillion won (approximately US$150 billion) in its foundry and system LSI business by 2030, an increase of approximately 25% over the previously announced investment plan for the same period. This is separate from its investment in the market leader in memory chips.
This investment will be geographically focused on the newly named “K-Semiconductor Belt”, which spreads across the entire country South of the capital Seoul. As part of its commitment, the South Korean government has promised to guarantee sufficient water and electricity for the next 10 years and provide 1 trillion won (approximately US$900 million) in long-term loans.
