▲ Chairman Lee Jae-yong taking a commemorative photo with the students of Gumi Electronics Announcement

Samsung will pour KRW 10 trillion over the next 60 years to foster the local industrial ecosystem.

We plan to designate and invest in specialized businesses such as semiconductor packages, cutting-edge displays, next-generation batteries, and smartphones by region, centering on major business sites nationwide, to support each region to become globally competitive.

Samsung announced today (10th) that its major affiliates such as Samsung Electronics, Samsung Display, Samsung SDI, and Samsung Electro-Mechanics plan to invest a total of KRW 60.1 trillion in key areas of the manufacturing industry over the next 15 years, focusing on major business sites located in Chungcheong, Gyeongsang, and Hunan.

The purpose is to enhance the competitiveness of local grassroots enterprises and industrial ecosystems, create quality jobs, and support balanced development in the region.

Since taking office at the end of October last year, Samsung Electronics Chairman Lee Jae-yong has been touring local business sites, starting with Gwangju, inspecting production sites and emphasizing win-win growth and revitalizing the local economy, saying, "We must create a healthy ecosystem to achieve a virtuous cycle of win-win."

This move reflects Chairman Lee's management philosophy that fostering the industrial ecosystem of each region rooted by Samsung affiliates is directly related to Samsung's future competitiveness.

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Accordingly, Samsung decided to create a semiconductor package specialized complex, a comprehensive cluster of advanced displays, and an all-solid-state battery mother factory in Chungcheong Province.

Samsung Electronics will strengthen its semiconductor package R&D capabilities at its Cheonan and Onyang sites and expand investment in facilities to expand production.

Samsung Display plans to establish a comprehensive display cluster in Asan and expand the proportion of production of cutting-edge, high-value-added products such as organic light-emitting diodes (OLEDs) and quantum dots (QDs).

Samsung SDI will strengthen next-generation battery technology research and mass production by establishing solid-state battery mother factories called "dream batteries" in Cheonan, and Samsung Electro-Mechanics will expand its high-value-added package substrate production base in Sejong.

In the Gyeongsang area, Samsung Electro-Mechanics will invest heavily in research to internalize core materials for laminated ceramic capacitors (MLCCs) and cultivate Busan as a "high-tech MLCC specialized area."

The Gumi site, which produces 23 million Samsung Electronics' flagship smartphones such as Galaxy S1 and foldable phones per year, will be established as a 'Global Smartphone Mother Factory' and the production technology developed in Gumi will be spread to production plants around the world.

Samsung SDI plans to cultivate Gumi as a production base specializing in advanced materials for semiconductors and displays, such as QD, while in Ulsan will expand research and investment in production facilities for core battery materials, such as "cathode active materials," which determine battery performance.

Samsung Heavy Industries contributes to the revitalization of the Geoje local economy by creating high-quality jobs.

In the case of the Honam area, Samsung Electronics has announced a policy to expand and reorganize the home appliances currently produced at its Gwangju site around premium smart products and cultivate them as a "global smart home appliance production base."

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In addition to investing KRW 60.1 trillion in the region, Samsung plans to promote programs to foster the semiconductor ecosystem, provide technology and funding, and support for local talent development for local companies.

A total of KRW 10.3 trillion will be invested in these win-win programs over the next 6 years.

In order to revitalize the semiconductor ecosystem, we will invest KRW 10 billion over 5 years in joint R&D with domestic partners and expansion of semiconductor prototype production support services (MPW) for small and medium-sized fabless companies.

In consideration of artificial intelligence (AI) and digital transformation, we will advance the smart factory construction support project, and give priority to supporting second- and third-tier suppliers, vulnerable industries, and companies in defunct areas.

To reduce greenhouse gas emissions and support environmental, social, and governance (ESG) investment by SMEs, we plan to create and operate an 'ESG fund' worth KRW 2 trillion.

We plan to share sewage and wastewater reuse technology with SMEs residing in local industrial parks, and build C Lab, a venture and startup training program currently operating in Seoul and Daegu, in Gwangju and other places.

In addition, we will help foster local talents by opening a new semiconductor contract department at a university in the province and expanding opportunities for Samsung Youth SW Academy (SSAFY) education to local youth.

(Photo = Courtesy of Samsung Electronics, Yonhap News)