South Korea aims to create the world’s largest advanced system semiconductor cluster in Greater Seoul and the surrounding metropolitan area by 2042, attracting KRW 300 trillion ($230 billion) in private investment.
The plan, spearheaded by President Yoon Suk Yeol, will connect existing manufacturing facilities in Giheung, Hwaseong, Pyeongtaek, and Icheon. By 2042, the cluster will house five advanced chip fabrication facilities and approximately 150 materials, parts, and fabless companies.
Companies participating in the semiconductor cluster will receive benefits such as reduced land acquisition and property taxes, simplified approval procedures, and a 1.4 times higher building-to-land ratio than general industrial complexes.
The new complex will be located near existing facilities operated by Samsung Electronics Co. and SK Hynix Inc. and materials, components, and equipment companies.
The South Korean government also aims to develop ten fabless companies with more than KRW 1 trillion in annual sales by supporting their prototype production.
In addition, the government is investing KRW 3.2 trillion by 2030 to develop next-generation semiconductor technologies for applications such as power generation, vehicles, and artificial intelligence.
In addition, the ministry plans to attract KRW 55 trillion in private-led investment in six high-tech industries by 2026, including semiconductors, displays, batteries, biotechnology, future vehicles, and robots.
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