South Korea has unveiled an ambitious plan to create the world’s largest semiconductor cluster by 2047, aimed at bolstering its position in the global chip market. The country’s President, Yoon Suk Yeol, announced the plan during a public debate, stating that the project requires a massive investment of 622 trillion won (approximately $471 billion) and aims to double the number of chip plants in southern Gyeonggi Province to 37, creating around 3 million jobs.
The plan involves consolidating chip plants into a large cluster, spread across major cities in the south of Seoul. The cluster will be located in Yongin of Gyeonggi Province and will be capable of memory chip manufacturing, foundry services, and research. The move is expected to attract major semiconductor companies and pave the way for significant advancements in the industry.
To support this massive endeavor, President Yoon emphasized the need for nuclear power plants within the cluster. He stated that a 1.3-gigawatt nuclear reactor would be required to operate a foundry due to the high electricity consumption of chip production. Yoon highlighted that nuclear power plants would ensure a stable supply of high-quality electricity, which is critical in the semiconductor manufacturing process.
The government plans to spend 158 trillion won in the next five years to kick-start the project and create approximately 950,000 new jobs. This investment includes commitments from companies such as Samsung Electronics and SK Hynix. Samsung Electronics has announced a plan to build a foundry plant for chip designer clients in Yongin, while SK Hynix aims to set up a new memory chip plant in the same region.
To incentivize investment in the semiconductor industry, South Korea increased the corporate tax break for strategic industries last year. President Yoon hinted that these incentives, set to expire by the end of this year, would likely be extended to further support the semiconductor cluster and encourage both small and large companies to invest in the sector.
South Korea’s semiconductor industry, led by Samsung Electronics and SK Hynix, dominates the global memory chip market, accounting for over 60 percent of global sales. With the establishment of the world’s largest semiconductor cluster, South Korea aims to solidify its position as a global leader in chip manufacturing, driving economic growth and job creation in the process.
The source of the article is from the blog enp.gr