Market Desk (Tech): Samsung is gearing up for a big investment in semiconductor manufacturing. They intend to invest more than $200bn in chip design and production.
Its production facilities will include 5 chip making sites. In addition, the South Korean government will allocate about $20bn over 5 years for developments in strategic technologies including AI.
In addition, about $280mn will be allocated in 2023 to develop packaging for microchips and another $77mn to develop infrastructure for industrial complexes. Two months ago, South Korean authorities proposed raising the tax deduction rate for investments in semiconductors and strategic developments from 8% to 15%. This would apply only to large corporations.
South Korea’s Ministry of Trade, Industry and Energy said in a statement on Wednesday that these mega projects will be the cornerstone of our semiconductor ecosystem. As part of the government plan, companies in the high-tech industry will be given incentives such as tax breaks and infrastructure support and Samsung wants to take this opportunity.
