Samsung Electronics Co. will soon come up with a system memory investment plan worth over 30 trillion won (US$26.28 billion).
The government has decided to focus on promoting the non-memory, biotech and future car sectors and it is planning to announce its plan at Samsung’s Hwaseong campus at the end of this month. Samsung Electronics is preparing to present at least 30 trillion won (US$26.28 billion) investment plan in return for the government’s non-memory semiconductor promotion policy on the same day.
The Ministry of Trade, Industry and Energy, Korea Semiconductor Industry Association and Samsung Electronics have been discussing the government’s non-memory promotion policy from last week, according to government and industry sources on April 22.
The government and the industry have continued a relay discussion during the weekend and exchanged practical opinions to promote the non-memory industry. The discussion included Samsung Electronics’ plans to foster the foundry business, promote shared growth with domestic fabless semiconductor design firms and partner companies, and train technical professionals as well as a research and development (R&D) roadmap and an infrastructure support plan.
In consideration of market conditions and internal situations, Samsung Electronics will disclose its investment plans in phases. The company will first announce its investment plan for an extreme ultraviolet (EUV) line to be completed next year at the Hwaseong campus in Gyeonggi Province. EUV is a next-generation semiconductor process technology and the price of equipment exceeds 200 billion won (US$175.21 million) per unit. More than 30 trillion won (US$26.28 billion) is required to fully operate a line.
Pyeongtaek is the only place that Samsung Electronics can build an additional non-memory line in South Korea besides Hwaseong for now. The company has been operating the first plant on an area of 2.89 million square meters in Pyeongtaek from 2017 and is completing the second plant in November this year. Since there is still space left to set up two to three more lines, this is the most likely candidate when Samsung establishes its next non-memory production line again in South Korea.
An official from the industry said, “As Samsung’s plans to promote its foundry business coincide with the government’s push for the non-memory semiconductor industry, there are high expectations for synergy created by the public-private partnership. Samsung will lead and the government will support.”