[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics is expected to accelerate its decision to invest in new and expanded semiconductor factories in the United States following its participation in a White House meeting.
On the 12th (local time), Samsung Electronics will be the only Korean company to attend a semiconductor-related virtual meeting hosted by the U.S. White House. It is reported that Choi Si-young, President of the Foundry Division, is likely to attend on behalf of Vice Chairman Lee Jae-yong, who is currently under detention.
The meeting, chaired by Jake Sullivan, U.S. National Security Council (NSC) Advisor, and Brian Deese, U.S. National Economic Council (NEC) Director, will be attended by a total of 19 companies including the world’s number one foundry company TSMC, as well as semiconductor companies such as Intel, GlobalFoundries, and NXP, and automobile companies like GM and Ford. Among these, four companies are U.S. automakers currently facing production and service difficulties due to semiconductor shortages. IT companies such as Alphabet and Dell, which are expected to face semiconductor component supply shortages in the future, along with defense and medical companies, will also participate.
Industry insiders expect the U.S. government, which is making every effort to attract semiconductor manufacturing facilities amid the semiconductor shortage, to request domestic investment through this meeting by urging for “smooth supply.” Since the White House announced that it would discuss the “American Jobs Plan” and strengthening U.S. supply chains in key sectors such as semiconductors at this meeting, it is highly likely that there will be pressure to establish factories capable of creating large-scale jobs.
Accordingly, the industry is paying close attention to whether Samsung Electronics will accelerate its previously considered U.S. investments. Samsung Electronics has been reviewing new and expanded semiconductor factories worth $17 billion (approximately 19 trillion won) in locations including Austin, Texas, Arizona, and New York, where it currently operates factories.
However, given the intense competition between the U.S. and China for semiconductor supremacy, some believe that a hasty decision to invest in the U.S. could increase the burden on Samsung Electronics’ business in China, making strategic judgment crucial.
A domestic semiconductor industry official said, “The U.S. cannot simply pressure Samsung Electronics unconditionally,” adding, “It is expected that the process of attracting semiconductor manufacturing facilities will proceed by offering ‘carrots’ such as tax incentives.”
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