South Korea says it will build an enormous facility to make computer chips in the greater Seoul area, with about $230 billion in investment from memory chip giant Samsung Electronics.
The plans were announced by President Yoon Suk Yeol on Wednesday and confirmed by the electronics giant.
“We will build the world’s largest new ‘high-tech system semiconductor cluster’ in the Seoul Metropolitan area based on large-scale private investment of almost 300 trillion Korean won,” he said.
“In addition, we will grow the ‘semiconductor mega cluster’ to the world’s largest in connection with the existing memory semiconductor manufacturing complexes.”
ASML Holding logo is seen at company’s headquarters in the Netherlands in January 2019.
Eva Plevier/Reuters
Europe joins the US in its chip war with China
A government statement said the chip cluster would be located in Gyeonggi province, which is part of the Seoul Metropolitan area, and the total investment would be completed in about 20 years.
In order to protect intellectual property, the country will revise its Industrial Technology Protection Act, according to the statement, which did not offer additional details.
Last May, Samsung
(SSNLF)outlined a plan to pour more than $350 billion into its businesses and create tens of thousands of new jobs through 2026. It said it would primarily invest in core businesses such as chipmaking and biopharmaceuticals.
It wasn’t immediately clear whether the previously announced investment would overlap with the one announced Wednesday by the government.
Sanjeev Rana, a CLSA analyst, told CNN that Samsung’s investment plans over the next two decades translates into an average of about 15 trillion won annually, which is close to its existing yearly capital expenditure.
“This is in line with market expectations,” he said.
Samsung is best known for its electronics division, with its popular smartphones and televisions. In recent years, the company has leaned further into its role as a provider of semiconductors as manufacturers around the world suffer from shortages.
An aerial view of Samsung Electronics’ chip production plant at Pyeongtaek, South Korea on September 7, 2022.
Samsung Electronics/Reuters/FILE
Memory chips, which have proved to be a key moneymaker for Samsung, will continue to be a focus area with further investment planned, according to the firm.
In the area of high-end computer chips, Samsung competes directly with Intel
(INTC) and Taiwan’s TSMC.
The vast majority of the world’s advanced microchips are made in just two places, Taiwan and South Korea. Taiwan’s industry is larger and more dominant, something South Korea is keen to challenge.
The concentration of so much crucial chip manufacturing in just two places has caused concerns over global supply chain stability especially as South Korea and Taiwan are both militarily threatened by neighbors, North Korea and China respectively.
Over the last few years, major economies express concern about losing access to semiconductors, particularly as political and economic tension has escalated between China and the United States.
Governments, including Washington, and major companies like Apple have asked semiconductor companies to localize their operations.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
