South Korea to Build $472 Billion ‘Semiconductor Mega Cluster’ by 2047

Sejong - In a significant move to bolster its semiconductor industry, South Korea announced plans on Monday to construct a "semiconductor mega cluster" in southern Seoul by 2047, involving a total investment of 622 trillion won (US$472 billion). This project is a collaboration with major industry players Samsung Electronics Co. and SK hynix Inc.

According to Yonhap News Agency, the proposed cluster will span across various industrial zones in southern Gyeonggi Province, covering a total area of 21 million square meters. By 2030, it aims to achieve a monthly production capacity of 7.7 million wafers. The government's plan includes the establishment of exclusive zones for the fabless industry in Pangyo and foundry and memory chip production facilities in Hwaseong, Yongin, Icheon, and Pyeongtaek.

Additionally, South Korea intends to develop an industrial zone for materials, parts, and equipment businesses in Anseong and research and development facilities in Giheung and Suwon. The area, which currently hosts 21 fabrication facilities, will see the addition of 16 more fabs by 2047, including three dedicated to research.

Industry Minister Ahn Duk-geun emphasized the goal of achieving global leadership in the chip sector and providing quality job opportunities for future generations through this initiative.

Samsung Electronics Co. has committed to a 500 trillion won investment, including the construction of six new fabs in Yongin, located 33 kilometers south of Seoul, with a budget of 360 trillion won. Additionally, Samsung plans to invest 120 trillion won for three new fabs in Pyeongtaek, 54 kilometers south of Seoul, and another 20 trillion won for three research fabs in Giheung.

SK hynix, the country's second-largest chipmaker, will allocate 122 trillion won to build four new fabs in Yongin. The government's vision is to enhance the complex's production capacity to focus on advanced products, including 2 nanometer process chips and high bandwidth memory.

The ministry further stated that this 622 trillion-won project is expected to create approximately 3.46 million jobs throughout its development. South Korea also aims to capture 10 percent of the global market for non-memory chips by 2030, a significant increase from the current 3 percent.

To support this ambitious project, the government plans to increase the country's self-sufficiency in key materials, parts, and equipment supply chains to 50 percent by

2030, up from the current level of 30 percent. This initiative includes launching a testbed for suppliers of chip-related materials, parts, and equipment at the Yongin complex by 2027, where companies can conduct trial runs of their products.

The construction of this mega cluster and the accompanying governmental support aim to solidify South Korea's position as a leading player in the global semiconductor industry, driving technological advancement and economic growth.

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