South Korea has announced a monumental plan to create the world’s largest semiconductor mega cluster in Gyeonggi Province by 2047, with an investment of 622 trillion won ($472 billion). This groundbreaking initiative aims to bolster the nation’s position in the fiercely competitive global chip industry and create over 3 million new jobs.
The current mega cluster will be expanded with 19 production fabs and two research fabs in neighboring cities within the province. This new mega chip cluster will cover 2,102 square meters and is projected to produce 7.7 million wafers per month by 2030.
According to the plan, Samsung Electronics will build six new fabs within a national industrial complex in Yongin, committing 360 trillion won to the effort. Additionally, the tech giant is set to erect three fabs in Pyeongtaek, for a sum of 120 trillion won, and develop three research fabs at an R&D center in the Giheung District with an investment of 20 trillion won. SK hynix is also participating with a pledge of 122 trillion won to construct four new fabs in Yongin.
President Yoon Suk Yeol, emphasizing the significance of the venture, stated, “Nuclear power plants in the country will provide stable power supplies to the new chip cluster.” He also highlighted the wave of foreign investment firms expressing interest in the upcoming hub, a continuation of the record-breaking foreign investments into South Korea seen last year.
The ministry has announced plans to ensure that the new mega cluster receives sufficient electricity and water for its operations, and will also benefit from new tax exemptions for specific key chip technologies. Pangyo, the current hub for fabless firms, will focus on low-powered, high-performance AI chips. Suwon will serve as a central testbed for compound semiconductors, and Pyeongtaek will be home to a new semiconductor R&D center at the Korea Advanced Institute of Science and Technology’s new campus, set to be completed by 2029.
The government expects the project to significantly increase the nation’s self-sufficiency in the supply chain of key materials to 50 percent by 2030, up from the current 30 percent. Moreover, the country aims to capture 10 percent of the global system semiconductor market by 2030.
In addition to the creation of 70,000 jobs from the construction of new fabs, the mega cluster is projected to generate a total of 3.46 million employment opportunities, including 40,000 new positions at companies supplying parts and materials. Minister Ahn Duk-geun expressed optimism about the project, saying, “The new mega cluster’s success will further spread to other parts of the nation and become the world’s leading chip hub.”
Relevant articles:
– Korea unveils plan to build $472 billion dollar mega chip cluster
– S. Korea unveils plan to build ‘semiconductor mega cluster’ by 2047
– Yoon says ‘semiconductor mega cluster’ outside Seoul will create 3 mln jobs
– Yonhap News Summary