South Korea will "build the world's largest semiconductor center around the capital with massive private investment worth 300 trillion won," President Yoon Suk Yeol said at an economic policy meeting.
"Speed is important. The government will do its best to carry out the project," he added, according to a transcript provided by his services.
Samsung said in a statement sent to AFP that it plans to invest 300 trillion won in the aggregation area over the next two decades.
South Korea's Ministry of Industry said the project is expected to be completed by 2042.
The South Korean government plans to invest heavily in six key technologies, including chips, displays and batteries, all areas in which the country's tech giants are already well established.
President Joe Biden during his visit to Samsung's chip factory, in Pyeongtaek, May 20, 2022 © SAUL LOEB / AFP/Archives
The vast majority of the world's most advanced microchips are made by two companies: Samsung and Taiwanese company TSMC.
In May 2022, Samsung announced a massive investment plan of 450 trillion won over the next five years to become a leader in key sectors ranging from semiconductors to biologics.
Securing the supply of high-tech semiconductors has become a crucial issue internationally and the US and China have engaged in a fierce battle for control of this market.
Last May, US President Joe Biden embarked on a tour of South Korea where he visited Samsung's vast chip factory in Pyeongtaek, demonstrating their major geopolitical importance.
© 2023 AFP