South Korea unveils USD450B push for global chipmaking crown
South Korea unveiled ambitious plans to spend roughly USD 450 billion to build the world's biggest chipmaking base over the next decade, joining China and the US in a global race to dominate the key technology.
Samsung Electronics and SK Hynix will lead more than 510 Trillion won (USD 60B) of investment in semiconductor research and production in the years to 2030 under a national blueprint devised by South Korea President Moon Jae-in's administration.
Samsung is boosting its spending by 30% to USD 151B till 2030. Hynix is committing USD 97B to expansion at existing facilities in addition to its USD 106B plan for 4 new plants.
The effort comes at a time when the US, China and the European Union seek to shore up their semiconductor capabilities after a global chip shortage exposed a reliance on just a handful of Asian manufacturers and hobbled efforts to repair pandemic-scarred economies. The shortages are now spreading from automobiles to smartphones and displays, elevating semiconductors onto the agendas of governments from Washington to Brussels and Beijing.
At stake is a technology fundamental to ground breaking advances from AI to autonomous vehicles and connected homes. South Korea, a security ally of the US and a major exporter to China, has been walking a tightrope between the two while bolstering its own production prowess. Semiconductors account for the largest share of South Korea's exports and chip exports are expected to double to USD 200 billion by 2030.
Samsung aims to compete more aggressively in this area, securing some of Nvidia's graphics card business and pursuing a bigger share of Qualcomm's mobile chips. Hynix too has announced ambitions to get into logic chips.
The investment of push of USD 450B in building the biggest chip building base has also attracted supply chains like packaging, T&R suppliers to enhance the investment and networks. Nexteck Singapore Pte Ltd, South Korea office has also strengthened our logistics team and warehouse facilities to prepare for the coming orders of WLCSP cover tape and precision cover tapes business.
