Samsung Electronics to Invest $230 Bln Through 2042 in South Korea Chipmaking Base

A Samsung sign is displayed, during the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain March 1, 2023. (Reuters)
A Samsung sign is displayed, during the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain March 1, 2023. (Reuters)
TT
20

Samsung Electronics to Invest $230 Bln Through 2042 in South Korea Chipmaking Base

A Samsung sign is displayed, during the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain March 1, 2023. (Reuters)
A Samsung sign is displayed, during the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain March 1, 2023. (Reuters)

South Korean tech giant Samsung Electronics expects to invest $230 billion over the next 20 years to develop what the country's government called the world's largest chip-making base, in line with efforts to boost the national chip industry.

Samsung's around 300 trillion won project is part of a 550 trillion won private-sector investment plan unveiled by the government on Wednesday. Seoul's strategy aims to expand tax breaks and support to raise competitiveness of high-tech sectors including those involving chips, displays and batteries.

The plans come as other countries introduce steps to bolster domestic chip industries, including the United States which last month released details of its CHIPS Act, offering billions of dollars in subsidies for chipmakers that invest in the country.

"The economic battlefield, which recently began with chips, has expanded ... countries are providing large-scale subsidies and tax support," said President Yoon Suk Yeol on Wednesday.

"(We) must support private investments to ensure further growth ... the government must provide location, R&D, manpower, and tax support."

Samsung's manufacturing additions will include five chip factories and attract up to 150 materials, parts and equipment makers, fabless chipmakers and semiconductor research-and-development organizations near Seoul, the industry ministry said in a statement.

In addition to private-sector investment, the government will budget 25 trillion won or more over five years for R&D in strategic technologies such as artificial intelligence. It will provide about 360 billion won to develop chip packaging, and about 100 billion won in electricity and water infrastructure this year for industrial complexes.

In January, the government proposed raising the tax deduction rate for facility investments in chips and other strategic technologies from 8% to 15% for large corporations.

Separately, Samsung Electronics, unit Samsung Display, affiliates Samsung SDI and Samsung Electro-Mechanics said they plan to invest 60.1 trillion won in the next 10 years in regions outside the Seoul metropolitan area to develop chip packaging, displays and battery technology.

South Korea, home to the world's two biggest memory chip makers, Samsung Electronics and SK Hynix Inc, is seeking to improve supply-chain stability to become a major player in the non-memory chip field, currently dominated by chipmakers such as Taiwan Semiconductor Manufacturing Co Ltd and Intel Corp.



Nvidia to Resume Sales of Highly Desired AI Computer Chips to China

President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP)
President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP)
TT
20

Nvidia to Resume Sales of Highly Desired AI Computer Chips to China

President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP)
President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2025 exhibition in Taipei, Taiwan, Monday, May 19, 2025. (AP)

Nvidia’s CEO Jensen Huang says the technology giant has won approval from the Trump administration to sell its advanced H20 computer chips used to develop artificial intelligence to China.

The news came in a company blog post late Monday, which stated that the US government had "assured" Nvidia that licenses would be granted — and that the company "hopes to start deliveries soon." Shares of the California-based chipmaker were up over 4% by midday Tuesday.

Huang also spoke about the coup on China’s state-run CGTN television network, in remarks shown on X.

"Today, I'm announcing that the US government has approved for us filing licenses to start shipping H20s," Huang told reporters in Beijing.

He added that half of the world's AI researchers are in China. "It's so innovative and dynamic here in China that it's really important that American companies are able to compete and serve the market here," he said.

Huang recently met with President Donald Trump and other US policymakers and is in Beijing this week to attend a supply chain conference and speak with Chinese officials. The broadcast showed Huang meeting with Ren Hongbin, the head of the China Council for Promotion of International Trade, host of the China International Supply Chain Expo, which Huang was attending. Nvidia is an exhibitor.

Nvidia has profited enormously from the rapid adoption of AI, becoming the first company to have its market value surpass $4 trillion last week. However, the trade rivalry between the US and China has been weighing heavily on the industry.

Here's what we know.

What is Nvidia's H20 chip? The H20 graphics processing unit, or GPU, is an advanced AI chip — a type of device used to build and update a range of AI systems. But it's less powerful than Nvidia's top semiconductors today.

That's because the H20 chip was developed to specifically comply with US restrictions for exports of AI chips to China. Nvidia's most advanced chips, which carry more computing power, are off-limits to the Chinese market.

Washington has been tightening controls on exports of advanced technology to China for years, citing concerns that know-how meant for civilian use could be deployed for military purposes. And in January, before Trump began his second term in office, President Joe Biden's administration launched a new framework for exporting advanced computer chips used to develop AI in an attempt to balance national security concerns about the technology with the economic interests of producers and other countries.

Restrictions on sales of advanced chips to China have been central to the AI race between the world's two largest economic powers, but such controls are also controversial.

Proponents argue that these restrictions are necessary to slow China down enough to allow US companies to keep their lead. Meanwhile, opponents say the export controls have loopholes and could still spur innovation. The emergence of China’s DeepSeek AI chatbot in January particularly renewed concerns over how China might use advanced chips to help develop its own AI capabilities.

What's happened since Trump took office? In April, the White House announced that it would restrict sales of Nvidia’s H20 chips to China — as well as MI308 chips from rival chipmaker Advanced Micro Devices with the Trump administration again citing national security.

At the time, Nvidia said these tighter export controls would cost the company an extra $5.5 billion and Huang and other technology leaders have been lobbying Trump to reverse the restrictions since. They've argued that such limits hinder US competition in a sector in one of the world’s largest markets for technology, and have also warned that US export controls could end up pushing other countries toward China’s AI technology.

Monday's announcement from Nvidia signals that its lobbying efforts paid off. White House AI and crypto adviser David Sacks told Bloomberg on Tuesday that allowing Nvidia to restart Chinese sales of its H20 chip would help the US better compete abroad, particularly with Chinese chipmaker Huawei Technologies.

Meanwhile, Commerce Secretary Howard Lutnick told CNBC on Tuesday that the renewed sale of H20 chips in China was linked to a trade agreement made between the two countries on rare earth magnets and maintained that the administration was also reversing course from April's restrictions because the US still doesn't sell China "our best stuff."

Still, calls for restrictions on advanced chip exports to China have persisted among US lawmakers on both sides of the aisle.

Just last week, Sens. Elizabeth Warren and Jim Banks wrote a letter to Huang noting that the hardware powering advanced AI "is of immense strategic importance" and again warned that this kind of technology could be used to accelerate Beijing’s effort to modernize its military if exported freely. US lawmakers have also proposed that chips subject to export controls should be tracked, to ensure they don’t end up in the wrong places.

Beyond export controls, California-based Nvidia — like other tech giants today — has been caught in the crosshairs of Trump’s tariff wars abroad, particularly amid America's tit-for-tat levies with China. But Beijing and Washington recently agreed to pull back some non-tariff restrictions. China says it’s approving permits for rare earth magnets to be exported to the US, while Washington has lifted curbs on chip design software and jet engines.

Nvidia and its CEO have also garnered Trump’s favor in recent months. In April, the company announced that it would be producing its AI chips in the US for the first time, starting with more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas.

Trump was quick to applaud Nvidia's move. He introduced Huang as a "smart cookie" who was helping bring jobs to the US at an "Investing in America" event held at the White House later that month.

Similar to Nvidia, AMD is now also poised to restart Chinese sales of its MI308 chips. The California-based company said in a statement that the Commerce Department was moving forward with license applications for these exports to China, and that it plans to resume shipments as those licenses are approved.