Amid shortage, Samsung pours $151 bln into chips

Amid a global shortage of semiconductors, South Korea's big firms - and its government - are taking action.

Samsung said Thursday (May 13) that it would invest just over $151 billion in non-memory chips by 2030.

That's up more than a quarter on a target set back in 2019.

The firm says a third production line will be ready at a plant south of Seoul in the second half of next year.

Local rival SK Hynix and other key names are also spending big.

South Korea's chip industry association says that 153 companies plan to invest a total of 510 trillion won - that's about $450 billion.

The government in Seoul will lend a helping hand.

On Thursday it announced bigger tax breaks for the industry, and loans worth around $883 million.

The tax breaks will rise to 6% from the current 3% or lower, for capital spending.

All the moves come as carmakers and other manufacturers battle a shortage of key chips.

Volkswagen, Ford, General Motors and others have all had to slow or suspend some production as a result.