Samsung will build a 214 billion euro chip production campus in South Korea

Samsung will work on a new chip production site in South Korea over the next two decades. The company will invest a total of 300 trillion won in this, equivalent to approximately 214 billion euros. The plans are part of investment plans by the South Korean private sector.

Samsung will make investments in its new production location in the coming years until 2042, reports, among others, CNBC. The campus will be located just outside the South Korean capital Seoul and will eventually consist of five different chip factories. It has not yet been stated exactly what kind of chips will be produced.

According to South Korea’s Ministry of Industry, the campus is expected to attract up to 150 manufacturers of materials, components and equipment, as well as fabless chip designers and semiconductor research organizations. The goal, according to the government, is to build a “semiconductor megacluster” by connecting different parts of the chip supply chain, from design to production.

The plans are part of investment plans by the South Korean private sector in the field of chips, displays, batteries and other tech markets. Companies will jointly invest up to 395 billion euros in this until 2026. The government of that country will expand tax benefits and other support to support this. In January, South Korea increased the tax deduction for chip investments from 8 to 15 percent.

The government of South Korea calls Samsung’s new location the “world’s largest chip production base.” The plans follow chip laws from several other regions. The US and Europe are both investing in their chip sectors and providing billions in subsidies. Taiwan also offers tax breaks to chip makers.