General interviews are allowed from the 17th to visit the management
US foundry construction and Pyeongtaek 3rd phase investment decision likely to accelerate
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Lee Jae-yong, vice chairman of Samsung Electronics, who was sentenced to jail in Seoul detention center after being sentenced to jail in Seoul detention center at the farewell trial for the destruction of the Gukjeong Nongdan case was quarantined for four weeks. As Vice Chairman Lee’s interview with the public becomes available from the 17th, it is noteworthy whether Samsung Electronics’ decision to invest in large-scale facilities at home and abroad and M&A (M&A) will speed up.
According to law enforcement and industry on the 16th, Vice-Chairman Lee, who was imprisoned in the Seoul Detention Center on the 18th of last month, was quarantined for four weeks according to the guidelines for responding to the novel coronavirus infection (Corona 19), and was transferred to a general detention room on the 15th of this month.
During the four-week quarantine period, Vice-Chairman Lee was only able to interview lawyers, and the lawyers also spoke with microphones in a space enclosed by glass partitions. However, as Vice-Chairman Lee’s quarantine was lifted and the steps to distance the Seoul metropolitan area were eased to two stages, the lawyers could conduct face-to-face interviews in the lawyer’s interview room and are allowed to visit the public.
As interviews with the general public become possible, it is observed that decision-making on major management issues can be accelerated through meetings with Samsung Electronics executives, such as Vice Chairman Ki-nam Kim and In-Yong Lee, President of External Cooperation.
Currently, the biggest issue for Samsung Electronics is the decision to invest in semiconductor facilities. In particular, attention is drawn to the decision of Samsung Electronics as the US and European governments are sending love calls to Samsung Electronics as a result of the global automotive semiconductor supply shortage. The US government plans to increase financial aid while actively working with allies to increase semiconductor production in the US. The European Union (EU) is pursuing a project worth €50 billion (about 66 trillion KRW) to produce more than 20% of semiconductor demand in the region.
Samsung Electronics is negotiating incentives for investment in Austin, Texas, USA, where the existing foundry (consignment production of semiconductors) is located, as well as Arizona and New York. Samsung Electronics plans to invest about 20 trillion won to build a foundry plant.
A detailed investment plan for the 3rd line of Pyeongtaek, which will start construction in earnest this year after starting the excavation last year, must also be confirmed. The investment in Pyeongtaek Line 3 is expected to exceed 30 trillion won.
An official in the industry said, “Samsung Electronics is in discussions with US state governments to build a foundry plant, but there is a disagreement on incentives such as tax benefits, so I know that the decision is delayed.” The decision will be quicker.”
As the family visits, including former Leeum Museum of Art President Hong Ra-hee, will soon begin, the issue of inheritance over the property of the late Chairman Lee Kun-hee is expected to end. Vice-Chairman Lee’s inheritance tax is due until April.
Some point out that even after Vice Chairman Lee’s general interview begins, there are limits to making decisions on major issues. An official in the business community said, “General interviews are allowed for only one person or 10 minutes a day, and documents and mobile phones are also prohibited. It is not easy to make important investment decisions only after 10 minutes of oral reports from management.”
/ Reporter Lee Jae-yong [email protected]
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