The South Korean government has announced the construction of the largest chip factory park in the world, with a trillionaire investment from Samsung Electronics, the main division of the technology giant. The complex, which should consist of manufacturing units specializing in high-end chips and memories, will be installed in the metropolitan area of the capital Seoul, and will receive a huge investment of more than 300 trillion won, a value that exceeds R$ 1 trillion. in direct conversion.
Alongside the minister of commerce, industry and energy, and representatives of Samsung, the novelty was presented by the president of South Korea, Yoon Suk-yeol, who stated that this would be “the largest semiconductor complex installed in metropolitan areas with investment private”. Suk-yeol also highlighted how speed in construction of the project is important, and reinforced the country’s commitment to making the proposal a reality, estimating its completion for 2042.
At the site, 5 specialized factories will be established, with some of them being destined to the production of last generation semiconductors, and there will be the participation of more than 150 local and global “fabless” companies (which do not manufacture their own processors), as well as companies that work in the supply of material and equipment.
As explained by the Minister of Commerce, the initiative is part of an even more ambitious project that will lead to the injection of a total of US$ 422 billion (~R$ 2.2 trillion) in six strategic areas of technology: semiconductors, vehicle batteries electric vehicles, autonomous vehicles, robots, screens and biotechnology. Of this amount, US$ 260 billion (~R$ 1.4 trillion) would be destined to the production of chips. Research and Development, chip packaging, infrastructure, tax incentives and even international technical cooperation would also be included.
Readers more informed on the industry movement will notice similarities with the CHIPS Act (or “Chips Law”, as it has been called in Portuguese), the package of federal measures developed by the US government in cooperation with giants of the semiconductor industry, including AMD, Nvidia, Intel and Samsung itself. As it turns out, the Korean design is much more robust and attractive, as politicians and brand representatives suggest.
The company would have stated that the North American proposal would make its plants in the USA less profitable, which generated uncertainties in relation to the company’s investments in the region. That issue was also commented on by Korea’s minister of commerce, who said the CHIPS Act “may deepen trade uncertainties, violate companies’ technology and management rights, as well as make the US less attractive as an investment option.”
In addition, President Yoon assured that the plants planned for the Korean complex would be “much superior to those in Texas”, referring to the factories planned by Samsung for the North American state, where the investment reaches “only” US$ 17 billion ( ~BRL 90 billion). In any case, it is still not possible to say that the promises will actually be fulfilled, and whether the complex will really be a colossus, considering that this type of construction takes years to complete.
Still, what can be concluded from the announcement is that more countries are in the race to reduce dependence on Taiwan, especially on TSMC, in the face of political uncertainties resulting from the conflict between the Asian island and mainland China. Even if the investment amounts seem astronomical at first, the losses could be much greater if conflicts result in the isolation of Taiwanese factories. The situation also shows the growing importance of semiconductors, especially with the strengthening of AI solutions.
Source: Techspot
