When it comes to South Korea, there is no way around this group – Samsung Group. Samsung Group is the top company in South Korea, accounting for nearly 20% of the country’s GDP. Whether it is chips or overall strength, Samsung Group is one of the best in South Korea. Among the top 500 companies selected by Fortune published in 2021, a total of 14 companies from South Korea entered the ranking, and Samsung Group is the giant industry in South Korea.

What is the intention of the US President to visit Samsung Semiconductor in the first stop of South Korea? This video tells you the secret through interesting interpretation. Today, the eleventh issue of the "Oncor Chip Story" online video series is launched for you.

For example, under the popularity of the global "core shortage tide", it has created a lot of trouble for the tension of the global supply chain, and the anxiety of the United States about the localization of semiconductors has intensified. Since the late 1990s, although American companies have maintained a leading position in the fields of EDA, core IP, integrated circuit design, manufacturing, equipment and other fields with a market share of more than 50%, their share in the field of wafer manufacturing has continued to decline. The current high inflation rate in the United States is also a very difficult problem facing it. The US government also hopes to have better control over the supply chain.

Biden also said in his speech, "It is critical to ensure our needs and strengthen supply chain resilience by working closely with allies and partners like South Korea that share value with the United States."

During the visit, Biden mentioned Samsung Electronics' investment in a wafer fab in Tyler, Texas, and expressed his gratitude for Samsung's huge investment in the United States. It is reported that the total investment of the plant is expected to be as high as 17 billion US dollars, which is the largest investment Samsung has ever made in the United States. Samsung's plant in Taylor will mainly manufacture semiconductors for mobile phones and computers. Construction of the plant is expected to begin in the first half of 2022, with operations in the second half of 2024. Samsung started its U.S. operations as early as 1978 and currently employs more than 20,000 people in the United States. With this investment, Samsung's total U.S. investment has exceeded $47 billion.

Therefore, Biden's visit to Samsung is more concerned with the real rebalancing of the chip manufacturing supply chain, in order to achieve the strategic purpose of the United States. Because, in terms of chip production, mainland China accounts for 24%, Taiwan, China, 21%, South Korea and Japan, 19% and 13%, respectively, and the United States, 10%. More than 75% of the world's chip production comes from Asia. In particular, the commanding heights in the field of chip manufacturing, chip manufacturing with processes below 5 nanometers, are mainly in Samsung and TSMC.

Biden also said in the interview, "Only in this way can we be more prosperous and strengthen our recovery capacity from a long-term perspective, so that our nationals can seize the most advantageous position in the competition of the 21st century. Only by ensuring the supply chain , in order to avoid being dependent on other countries for economic and national security.”

The semiconductor industry is the basic industry of the information society and the core supporting industry of the country. It not only changes the lives of ordinary people, but also determines the political, economic and military status of the country in global affairs.

The semiconductor industry has formed a complete industrial chain in many countries and regions. The interdependence of enterprises in the industrial chain has deepened, and global cooperation has benefited many enterprises. This also makes it difficult for any country or region to achieve complete self-sufficiency. Many enterprises also benefited from it. As a truly independent big country, if the semiconductor industry is not to be controlled by others, it must strive to complete the localization of the entire industry chain, so that the risks can be controlled. At present, under the background that the country vigorously advocates the development of semiconductors, the localization of chips will be gradually realized.

Welcome to watch the eleventh issue of the online video series "Onke Chip Story". If you have any comments and suggestions on our video, you are also welcome to follow us, and leave a message in the comment area or send us a private message, thank you very much .