Semiconductors, Physical AI, and Data Centers: A Major Shift in the Industrial Map

[Anchor]

Samsung and SK Hynix will invest 800 trillion won in the Honam region to build four additional semiconductor production plants—two for each company. The back-end processes of semiconductor production are expected to be based in the Chungcheong region, while hubs for physical AI will be established primarily in the Daegu-Gyeongbuk and Saemangeum areas.

Reporter Park Jae-hyun explains using the map.

[Reporter]

The most notable development is the establishment of a memory chip manufacturing hub in the Jeonnam-Gwangju Integrated Special City, which will be launched next month.

A total of 800 trillion won will be invested to construct four memory chip plants: two by Samsung Electronics and two by SK Hynix.

The Yeongnam region will be fostered as a hub for materials, parts, and equipment, leveraging its existing semiconductor industrial base.

While specific investment figures were not mentioned, it is expected to become an innovation hub for promising technologies, such as power semiconductors and the supply chain for materials, parts, and equipment.

The Chungcheong region has been designated as the hub for advanced packaging—the back-end process of cutting semiconductors and connecting wires so they can be mounted onto circuit boards.

Samsung and SK Hynix plan to invest an additional 81 trillion won to build more packaging plants.

The government's plan is to secure a definitive lead in the memory chip market by expanding semiconductor industrial hubs nationwide and accelerating the completion of the six Samsung Electronics plants and four SK Hynix plants currently under construction in Yongin by 7 and 12 years, respectively.

---

The hubs for physical AI and robotics will be located in Saemangeum and the Daegu-Gyeongbuk region.

Saemangeum will host a robot manufacturing plant and parts complex promoted by Hyundai Motor Company, and the government will provide support to help automotive and home appliance parts companies in the Daegu-Gyeongbuk region transition into robot parts manufacturers.

The goal is to leap to become the world leader in the physical AI sector by 2030 through rich manufacturing infrastructure and training data management.

---

Three companies—SK, Naver, and GS—plan to invest 550 trillion won by 2029 to build AI data centers in Ulsan, the East Sea region, and Sejong, with plans to expand the total investment to 1 quadrillion won thereafter.

[Interview: Bae Kyung-hoon / Deputy Prime Minister and Minister of Science and ICT: There will clearly be various effects, such as direct economic impact, job creation through large-scale capital investment, and the emergence of leading solution companies.]

The government has decided to significantly ease related regulations and procedures to create locations desired by companies, and will actively support the development of living conditions and transportation infrastructure in those regions.

The move is seen as an attempt to achieve two goals simultaneously: balanced national development and the fostering of next-generation industries, by completely restructuring South Korea's industrial map to focus on advanced future industries.

Reported by Park Jae-hyun | Video by Kim Jun-hee | Graphics by Jang Chae-woo
※ Please note: This article was translated by AI and may contain errors.