▲ President Lee Jae-myung speaks at the National Report Meeting on the Three Mega-Projects held at the Blue House on the 29th.
The government is pushing forward with three mega-projects to drive a major leap forward for South Korea, including investments of 800 trillion won in the southwest region and 81 trillion won in the Chungcheong region.
Minister of Trade, Industry and Energy Kim Jeong-gwan announced the plan today (the 29th) at the National Report Meeting on the Three Mega-Projects for South Korea's Great Leap Forward, held at the Blue House.
He stated, "We will develop the southwest region into a second semiconductor production base," adding, "We will build four memory fabs through a total of 800 trillion won in corporate investment."
He continued, "We will drastically shorten the time from licensing to construction to rapidly expand production capacity," and added, "Through this, we will maintain our overwhelming market dominance and super-gap in memory semiconductors."
The presentation materials released by Minister Kim also included plans to invest 81 trillion won in the Chungcheong region to foster it as a packaging hub.
He explained, "In the Chungcheong region, we will foster an advanced packaging hub to respond to the increasing demand for packaging that will follow the expansion of semiconductor production capacity," adding, "We will also develop the southeast and Daegu-Gyeongbuk regions into hubs for semiconductor materials, parts, and equipment supply chains, and grow them into next-generation innovation hubs for power and other semiconductors."
The plan aims to turn the entire nation of South Korea into a semiconductor cluster.
Emphasizing the need to expand investment to strengthen the competitiveness of the semiconductor industry, Minister Kim said today, "Our DRAM market share is expected to fall from 61% to 50%. There is a concern that we may even lose the position we currently hold."
He further stated, "To become an irreplaceable semiconductor powerhouse, we must win in the battles of speed, location, and leadership," adding, "Total support is needed to back this up."
Expanding semiconductor production bases to local areas such as the southwest is part of the "battle of location."
Minister Kim explained, "It is difficult to respond to the exploding demand for semiconductors with a single base in the capital region alone. There are limits to expanding beyond what is currently planned due to constraints in power and water supply."
To win the "battle of speed," the government has decided to advance the construction schedule of previously planned semiconductor fabs in the capital region.
Minister Kim said, "Our companies and the government have agreed to work together to double the semiconductor production capacity in the capital region within five years," adding, "To this end, we will drastically shorten the construction schedule for fabs, which was planned for the mid-to-late 2040s, by up to 12 years to the mid-2030s."
Regarding the "battle of leadership," he said, "In the AI era, various semiconductors that meet diverse demands are expected. We will make this new market a new growth engine for semiconductors," and added, "We will invest 30 trillion won over 15 years to support the entire cycle from R&D, design, and verification to manufacturing."
Minister Kim also urged the participation of companies, universities, and local governments, stating, "To win the semiconductor war, we need a total mobilization of national capabilities with the participation of all citizens."
▲ Minister of Trade, Industry and Energy Kim Jeong-gwan presents policies at the National Report Meeting on the Three Mega-Projects presided over by President Lee Jae-myung at the Blue House on the 29th.
(Photo: Yonhap News)
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