As reported by Ukrinform, the BBC reported it.

“The megacluster will become the fundamental foundation of our semiconductor ecosystem,” South Korea’s Ministry of Commerce, Industry and Energy said in a statement.

The company reported that investments will be directed to the construction of five factories for the production of microcircuits.

Samsung is the world’s largest manufacturer of memory chips, smartphones and televisions.

Under the official plan, companies in high-tech industries will be offered incentives, including expanded tax exemptions and infrastructure support.

The Ministry of Commerce, Industry and Energy said it plans to invest approximately 550 trillion won in the private sector and “advance as a leading country in the face of fierce global competition for advanced industries.”

Paul Triolo of the global consulting firm “Albright Stonebridge Group” believes such a move by South Korea happened against the backdrop of increased efforts by the industry’s main “players” to increase onshore semiconductor production.

He added that South Korea wants to emulate the clustering effect of Taiwan, where the trio of science parks form a huge cluster that attracts many companies.

Semiconductors, which power everything from cell phones to military equipment, are at the center of the fierce conflict between the US and China.

South Korea’s commerce ministry has expressed concern over US semiconductor policy after Washington announced in October that it would require licenses for companies that export chips to China using US gadgets or software.

As Ukrinform reported, the Netherlands will join efforts to curb US chip exports to China by imposing new restrictions on the export of semiconductor technologies to protect national security.