Samsung Electronics announced AUD$196 billion in investments to be made over the next years, but a paltry $22 billion in U.S manufacturing might not be a big enough investment to compete in the market.

Taiwan’s TSMC, the world’s top semiconductor foundry, is considering the production of a AUD$30-$32 billion 3-nanometer process chip fabrication line in Phoenix, in addition to its previously announced $12.8-15.4 billion 5-nm fab investment in America.

This shift to American manufacturing follows President Joe Biden’s pledge for US$50 billion in funding to support domestic chip making.

Intel has also announced an investment of US$20 million in chip manufacturing.

Samsung are expected to announce its strategy at the Korea-US summit in Washington this week.

“Even in the memory market, where Korea has always been the leader, the competition is getting fiercer,” Kim Ki-nam, vice chairman of Samsung, acknowledged late last week.

“Rather than striving to keep the post, Samsung will make pre-emptive investments to widen the gap that can never be narrowed.”

“Korea’s semiconductor industry is at a watershed moment, and it is the right time to set a long-term vision and plans for investments.”