$6.4 Billion for Samsung

Another move to ensure continuity in chip supplies.

A few weeks ago I noted the $20 Billion Grant For Intel and now there’s a similar deal for Korean memory manufacturer Samsung.

There are many chip foundries in Asia, most notably Taiwan Semi Conductor Manufacturing, who have been diversifying their production locations into Japan and other China resistant countries. China has no claim on South Korea, but with North Korea right next door, combined with any conflict in the area affecting shipping for both countries, it’s comforting to have a portion of what they do happening somewhere very safe.

Intel is a competitor to TSMC and it is thought they will make a big leap and catch up in various ways, a change from their prior strategy of incremental improvements to their products every two years. Intel also overlaps with Samsung, but there’s a less dramatic difference in their offerings. Samsung has long dominated flash memory, their competitors here are Intel and Micron, but both of them have a relatively tiny market share,

Every move like this reduces the hazards if Chairman Xi should actually lose his mind and order direct action against Taiwan. I don’t think that’s a good move for an export dependent economy that imports 80% of its agriculture inputs, but nobody is asking me …