Samsung is planning massive investments: Five large factories are to be built in South Korea over the next 20 years, the total costs are currently estimated at 230 billion US dollars. The fabs should be intended for all areas from in-house memory and chip production to contract business.
It is South Korea's answer to the international race for locally based IT industry. Overall, South Korea wants to spend the equivalent of 422 billion US dollars with industry in order to massively strengthen industry in six sub-sectors such as automotive, batteries, robotics, displays, chips and biotechnology in the coming years and to encourage expansion.
A total of fourteen new industrial complexes are planned, with the electric car, but above all the chip industry, being the most important elements. The mainstay is of course the South Korean company Samsung. The plans of the group announced parallel to the government initiative are correspondingly comprehensive and will continue to shape the landscape in South Korea in the chip area. USD stretched to 20 years
Samsung will pay 300 trillion won for the expansions over the next 20 years, the equivalent of 230 billion US dollars or almost 215 billion euros. Older forecasts help to classify the numbers, because Samsung has always had big plans: In 2019, the manufacturer announced that it would invest 100 billion US dollars by 2030, but in the meantime there was talk of much higher spending in a shorter period of time. From now until the year 2042, the above 230 billion US dollars means “only” 12 billion US dollars each year.
After the mega-complex in Pyeongtaek, Samsung and corporate partners will create a new facility in Gyeonggi province near the city of Yongin. At least five Samsung factories are to be built here, but other companies are also to settle there. Many other IT companies, research institutions, design centers and companies from the surrounding area will join them, reports Korea JoongAng Daily. In the end, 150 companies are planned to be based in the complex, making it the largest in the world.
The Samsung conglomerate invests in many areas
But Samsung as a conglomerate is planning even more. According to the company's Korean press release, at least 60 trillion won, the equivalent of 46 billion US dollars, will be freed up and invested throughout the country in ten years. The focus is on areas such as packaging, displays, batteries, smartphones and other electrical components, but also on Samsung Heavy to advance the production of LNG ships.