Samsung is investing $230 billion on technology that will transform the industry of the future, according to JVTech.
Published on 03/16/2023 at 12:40
Samsung is the latest company to join the semiconductor industry, which is investing 230 billion dollars on the world's largest facility for the manufacturing of this type of component every day.
Semiconductor manufacturing has become the weapon of war in the technology industry in recent years : shortages have increased in particular as a result of slow production or even a standstill in China. In this context, various businesses that have the means to do so are striving to become independent in the manufacture of semiconductors.
Samsung is the case here. The South Korean company has just announced its intention to build "the world's largest semiconductor cluster," in collaboration with South Korea's government. Project budget: 300 trillion won, or $230 billion.
A 20-year-old industrial project is a huge undertaking.
Yoon Suk Yeol, the president of the Republic of Korea, presented some details of the project at an economic policy meeting. The factory would be built "around the capital," that is to say Seoul, "thanks to massive private investment." These investments, in their vast majority, are made by Samsung.
The creation of this massive project might take around 20 years. The "mega cluster" might be completed by 2042 and will be able to produce a wide variety of high-end chips, including both computer memory and logic chips.
Samsung is a partner with South Korean government.
South Korea's manufacturing capabilities and technologies in many high-tech industries, such as semiconductors, secondary batteries, and displays, have been lacking, according to the Department of Commerce.
Samsung is proving to be the ideal partner for a future shakeup. Currently, the company is one of the most active companies in the global semiconductor manufacturing, alongside Taiwanese company TSMC. A project of this magnitude would allow it to pass relatively quickly in the future.
Global ambitions to defeat China are becoming more apparent.
Samsung's proposal is the latest in a long line of significant investments in the semiconductor industry. Last week, the US government announced a $52 billion initiative to assist microchip manufacturing in the United States. In 2021, Taiwanese company TSMC announced a 100 billion dollar investment plan to expand its chip manufacturing capacity. Europe, for its part, has adopted a measure called the EU Chips Act, which aims to quadruple chip manufacturing in the region by 2030.
AsML, the Dutch leader in the manufacture of chips, is putting its stone to the test and aiding other countries in their growth, while leaving China out.
China might be unable to maintain significant market shares in the semiconductor industry in this context. And this is precisely what countries who wish to expand their own business do. They appear to be on their way to accomplishing this.