Korea spends $450 billion on investment plan, seeks to compete with China and U.S. for global chip manufacturing crown

Foreign media reported that South Korea announced plans to spend about 450 billion U.S. dollars (about 3.5 trillion Hong Kong dollars) over the next decade to make itself the world’s top chip manufacturing base, thus joining China and the United States in the battle for global dominance in key technologies.

According to a national blueprint designed by the Moon Jae-in administration, Samsung Electronics and SK Hynix will be the protagonists of more than 510 trillion won in investments in semiconductor R&D and production in the period until 2030. They will join 151 other companies in a 10-year plan to defend South Korea’s most critical industry. Moon Jae-in will visit a state-of-the-art chip factory of Samsung in southern Seoul on Thursday afternoon (13), when he will hear from chip executives about the plan.

Following the current global chip shortage has revealed a serious chip dependence problem, and the global economy from the trauma of the epidemic to form a restraint, the United States, China and the European Union have focused on strengthening their own semiconductor production capacity. The chip shortage has now spread from the automotive industry to the smartphone and display industry, and semiconductors have thus been put on the important agenda in Washington, Beijing and Brussels.