SEOUL, South Korea: In line with the country's efforts to boost its chip industry, South Korea's Samsung Electronics said it will invest some $230 billion over the next 20 years to help develop what could be the world's largest chip-making base.
The investment is part of Seoul's strategy to expand tax breaks and support to raise the competitiveness of high-tech sectors, including for chips, displays and batteries.
Other countries are also boosting their domestic chip industries, including the US, which announced the details in February of its CHIPS Act that will offer billions of dollars in subsidies for chipmakers that invest in the country.
"The economic battlefield, which recently began with chips, has expanded, and countries are providing large-scale subsidies and tax support. We must support private investments to ensure further growth. The government must provide location, R&D, manpower, and tax support," said On Samsung Electronics President Yoon Suk Yeol, as reported by Reuters.
As well as private-sector investment, Seoul will provide massive financing over five years for R&D in strategic technologies, such as artificial intelligence, as well as for chip packaging, and in electricity and water infrastructure.
At the start of the year, the South Korean government said it could also increase the tax deduction rate for large corporations in the areas of facility investments in chips and other strategic technologies from 8 to 15 percent.
The home country of the world's two largest memory chip makers, Samsung Electronics and SK Hynix, South Korea also aims to become a major player in the non-memory chip sector, which is currently dominated by chip-makers Taiwan Semiconductor Manufacturing and Intel.