The tech giant plan on funnelling more than $230 million over two decades to create a centre for semiconductor development in the company’s home country.
Samsung - who is the world’s largest manufacturer of memory chips, smartphones and televisions - told BBC News about their intention to create five factories to make the part that can power anything from phones to military equipment and has been the subject of global political debate between China and the United States.
The South Korean government’s Ministry of Trade said: "The mega cluster will be the key base of our semiconductor ecosystem.”
According to Paul Triolo, a rep from Albright Stonebridge Group The move into the sector comes as "major players are ramping up efforts to boost onshore manufacturing in the semiconductor sector."
He continued: "It wants to emulate to some degree Taiwan's clustering effect, where the trifecta of science parks... form a massive cluster that has attracted numerous other companies, both upstream and downstream in the supply chain."
Last autumn, the US federal government revealed they would enforce a licensing system for firms selling chips to China, regardless where they were created.
Recently, the Dutch government shared their plans to do the same.
The Netherlands’ trade minister Liesje Schreinemacher said: "The Netherlands considers it necessary on national and international security grounds that this technology is brought under control as soon as possible.”