South Korean tech giant Samsung Electronics has increased its semiconductor capital budget, the company announced today.
Samsung’s original plan of investing in chip manufacturing by 2030 exceeded costs of KRW 133 trillion, and today the company has increased that to KRW 171 trillion, or roughly $151 billion. Samsung announced this at an event hosted by the South Korean government. And that’s not all, Samsung and SK Hynix will receive up to 50% tax breaks, as South Korea has decided to actively develop the production of microcircuits.
In other words, Samsung will spend $151 billion on developing its business, and in return will receive about $75 billion back from the state. All of this will work under the K-Semiconductor program developed by the Korean government, which plans to establish a kind of K-Chip quality mark in the country, i.e. Korean Сhip. It’s like K-pop, only with chips. South Korea is set to become the world’s leading chipmaker. To this end, the government will provide financial assistance to companies, sponsor the construction of new factories, and attract foreign specialists to develop technologies.
