South Korean tech giant Samsung Electronics plans to raise US$230 billion over the next 20 years.
SamsungThe approximately KRW 300 trillion (approx. Rs. 1.89.86 billion) project is part of a KRW 550 trillion (approx. Rs. 34.81.2 trillion) private sector investment plan, which was announced on Wednesday from was presented to the government. Seoul’s strategy aims to expand tax breaks and boost the competitiveness of high-tech sectors, including those related to chips, displays and batteries.
The plans come as other countries take steps to bolster domestic chip industries, including the United States, which released details last month CHIPS lawwhich offers billions of dollars in subsidies to chipmakers investing in the country.
“The economic battlefield that started recently with chips has widened…Countries are providing large-scale subsidies and fiscal support,” President Yoon Suk Yeol said Wednesday.
“(We) need to support private investment to ensure further growth… the government needs to provide location, R&D, labor and fiscal support.”
Samsung’s manufacturing expansions will include five chip fabs and will attract up to 150 materials, parts and equipment makers, fabless chip makers and semiconductor research and development organizations near Seoul, the industry ministry said in a statement.
In addition to private sector investment, the government will invest KRW 25 trillion (approx. KRW 360 billion (approx. Rs ) for power and water infrastructure for industrial complexes this year.
In January, the government proposed raising the tax deduction rate for fixed asset investments in chips and other strategic technologies from 8 percent to 15 percent for large companies.
Separately, Samsung electronicsUnit Samsung displayaffiliated companies Samsung SDI and Samsung Electro-Mechanics announced that they plan to invest KRW 60.1 trillion (approx.
South Korea, home to the world’s two largest memory chip makers, Samsung Electronics and SK Hynix, is striving to improve supply chain stability to become a major player in the non-memory chip space currently being dominated by chipmakers such as Taiwan Semiconductor Manufacturing Co And intel.
© Thomson Reuters 2023
