Samsung invested 31 trillion yen in its own semiconductor production
🟦 Samsung to build new semiconductor plant in South Korea
Samsung Electronics Co., Ltd. announced that it will build a new contract manufacturing base in the suburbs of Seoul, South Korea. We will invest a total of 20 trillion won (about 300 trillion yen) over the next 31 years.
Samsung’s fourth semiconductor production base in Japan will be newly established in Yongin, a suburb of Seoul. Construction will begin in 4 and operations are expected to begin around 2026. At the new base, we plan to engage in foundry (contract manufacturing) business. Prepare for the development of cutting-edge processes with rival TSMC.
🟦 South Korea’s “K-Semiconductor Belt” Strategy
Samsung is building the world’s largest semiconductor plant in Pyeongtaek, which is adjacent to Yongin City. We are trying to concentrate domestic and foreign suppliers around Pyeongtaek. Since semiconductors are small and lightweight, transportation costs are low, and it is rational to concentrate investment in one place and mass production.
The challenge was that South Korea did not have a semiconductor cluster like Hsinchu, the home of TSMC in Taiwan. For this reason, we have established a “K-semiconductor belt” strategy at the national level. We aim to create a semiconductor cluster by concentrating our bases on major semiconductor manufacturing that connects to the K-shape.
Major semiconductor manufacturing bases in Korea
- Kiheung, Hwaseong, Pyeongtaek, Onyang
- SK Hynix
- Icheon, Yongin, Cheongju
Samsung’s ¥31 trillion investment in its own semiconductor production is in line with South Korea’s “K-semiconductor belt” strategy
Japan there was the Silicon Island concept in the 1980s.