South Korea Unveils $230 Billion Plan To Build World's Largest Semiconductor Chip Cluster In Seoul Metropolitan Region By 2042

South Korea today (Mar 15) unveiled an ambitious plan to build the world's largest high-tech semiconductor chip cluster in Yongin, Gyeonggi Province by investing $230 billion as part of its effort to to achieve competitive edge in the sector.

The semiconductor mega cluster is part of the government's grand plan to promote six key industries (chips, displays, secondary batteries, bio, future vehicles and robots) by attracting up to $230 billion

"Cutting-edge industries are a core growth engine, as well as a security and strategic asset, and directly connected to our jobs and public's livelihoods," the country's President Yoon Suk Yeol said in an address.

“Recently, the economic battlefield that started with semiconductor is expanding to the entire high-tech industry, including batteries and future cars,” Yoon said. “Countries are spending large-scale subsidies and tax support to attract high-tech manufacturing facilities to their own countries.” he further added.

Explaining the objectives of the plan, Yoon Suk Yeol noted that while South Korea possesses best-in-class manufacturing capabilities in high-tech industries such as memory chips, OLED and secondary batteries, it still lack cutting edge process in system chip production. The country's global share in system chip market is only 2-3 percent. 

The president said the Yongin has been proposed semiconductor cluster will be located at Yongin, south of Seoul. Samsung Electronics already has a significant presence in Yongin. Samsung is the world's biggest memory chip manufacturer and a major contract chipmaker behind Taiwan Semiconductor Manufacturing Company (TSMC).

Samsung Electronics will build five new domestic semiconductor plants in the proposed cluster.

Yoon also announced a seperate plan to build 14 national advanced industry complexes spanning a total area of over 33 million square meters outside the capital area in an effort to nurture sectors like space, nano technology, semiconductor, aerospace, future mobility, hydrogen and secondary battery.