Leading companies in South Korea, including Samsung Electronics Co. and SK Hynix Inc., have revealed their intentions to invest over USD470 billion (~RM2.21 trillion) in establishing the world’s largest chipmaking cluster. This move is part of a global competition to secure the domestic supply of semiconductor technology.
On Monday (15 January), the government presented a blueprint for this initiative, involving a private sector investment of 622 trillion won (USD471 billion) until 2047. The funds will be utilised to construct 13 new chip plants and three research facilities, in addition to the existing 21 fabs, according to Bloomberg.
Stretching from Pyeongtaek to Yongin, this expansive area is anticipated to become the world’s largest chipmaking cluster, with a capacity to produce 7.7 million wafers monthly by 2030.
This envisioned investment represents a significant increase from the initial plans revealed in 2023. South Korea’s government, in close collaboration with private companies on national priorities, is intensifying its support for the domestic chip sector, which constitutes approximately 16% of total exports.
In the face of heightened global competition from Japan and Taiwan, the Korean government is committed to offering substantial tax incentives to local chip firms. As part of a two-decade plan, Samsung and Hynix are slated to construct their most advanced chip plants domestically.
The government envisions the region hosting not only major chip manufacturers but also smaller companies involved in chip design and materials.
The overarching goal is to enhance the country’s self-sufficiency in semiconductors and increase its global logic chip production market share to 10% by 2030, up from the current 3%.
