Biden Also Attends White House Meeting... Will Samsung Electronics Accelerate US Investment? (Comprehensive)

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics is expected to accelerate its decision to invest in new and expanded semiconductor factories in the U.S. following its participation in a White House meeting. Attention is focused on how far discussions on semiconductor-related issues will go as U.S. President Joe Biden is set to briefly attend the meeting.

On the 12th (local time) at 12 p.m., Samsung Electronics will be the only Korean company to participate in a semiconductor-related virtual meeting hosted by the White House. It is reported that Choi Siyoung, 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 Advisor (NSC), and Brian Deese, Director of the U.S. National Economic Council (NEC), will include 19 companies such as TSMC, the world’s No. 1 foundry (semiconductor contract manufacturing) company, Intel, GlobalFoundries, NXP, as well as automakers like GM and Ford. Among these, four are U.S. automakers currently facing production and service difficulties due to semiconductor shortages. IT companies like Alphabet and Dell, which are expected to face future semiconductor supply shortages, along with defense and medical companies, will also attend.

President Biden will also attend the meeting. The White House stated that Sullivan, Deese, and Commerce Secretary Gina Raimondo will participate, and that President Biden will join the meeting 'briefly.' About two hours after attending this meeting, President Biden will hold discussions with lawmakers regarding the 'American Jobs Plan,' which includes semiconductor issues.

Industry insiders expect the U.S. government, which is making every effort to attract semiconductor manufacturing facilities amid the semiconductor shortage, to use this meeting to request domestic investment by urging for smoother supply. Since the White House announced that the meeting would discuss strengthening U.S. supply chains in key sectors such as semiconductors under the 'American Jobs Plan,' there is a high possibility of pressure to establish factories capable of creating large-scale jobs.

Accordingly, the industry is paying close attention to whether Samsung Electronics will accelerate its U.S. investment plans that have been under review. Samsung has been considering new and expanded semiconductor factories worth $17 billion (approximately 19 trillion KRW) in locations including Austin, Texas, Arizona, and New York, where it currently operates factories. Given that it has been considering foundries capable of advanced processes, negotiations may proceed depending on incentives such as tax benefits.

However, some view that strategic judgment is crucial as the U.S. and China are fiercely competing for semiconductor supremacy, and a hasty decision to invest in the U.S. could increase the burden on Samsung Electronics’ business in China. If Samsung accepts the U.S. demand for domestic investment, there is also speculation that China may request additional investment in Samsung’s factory in Xi’an.

A source from the domestic semiconductor industry said, "The U.S. cannot simply pressure Samsung Electronics unconditionally," and predicted, "They may proceed with a process to attract semiconductor manufacturing facilities by offering 'carrots' such as tax benefits."

This content was produced with the assistance of AI translation services.