Samsung has responded to generous tax credits announced by Seoul by committing to spending AUD$195.8 billion in total over the next ten years.

South Korea now has the most generous tax credits given to chipmakers anywhere in the world, with breaks of up to 50 per cent for manufacturers.

President Moon Jae-in announced the tax breaks on Thursday at Samsung’s Pyeongtaek complex.

“Korea will achieve its goal of becoming the world’s top integrated device manufacturer, including the system-on-chips by 2030,” President Moon Jae-in said.

“Based on the prowess of the country’s semiconductor industry, Korea will also preoccupy competitive edges in all industries to take a new leap in the post-coronavirus era.

“Through concerted efforts by the private sector and the government, Korea will overcome the wave of risks of reshaping global supply chains.”

Samsung announced it is on track to complete its the third fabrication line in its Pyeongtaek complex by the second half of 2022.

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

“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.”