On January 15, the Ministry of Industry and Science of South Korea unveiled an ambitious semiconductor industry promotion plan, marking a significant leap toward global technological leadership. In collaboration with industry giants Samsung Electronics and SK Hynix, the plan involves a whopping investment of 622 trillion Korean won (approximately 470.5 billion USD). The primary objective is to establish the world’s largest semiconductor industry cluster in the southern part of Seoul by 2047, promising a myriad of economic and technological benefits.
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Introduction
Overview of the South Korean Semiconductor Industry Plan
The announcement comes as South Korea solidifies its commitment to dominating the semiconductor landscape. With Samsung Electronics and SK Hynix at the forefront, the plan outlines a colossal investment to propel the nation into a pivotal role in global technology advancement.
Key Players Involved – Samsung Electronics and SK Hynix
Samsung Electronics and SK Hynix, two semiconductor juggernauts, will jointly spearhead this monumental initiative. Their combined investment of 622 trillion Korean won underscores the scale and significance of the project.
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The Super Cluster Vision
Location and Size of the Proposed Semiconductor Industry Cluster
The envisioned supercluster will sprawl across the southern Gyeonggi Province, covering a staggering 21 million square meters. By 2047, this colossal hub aims to be the epicenter of semiconductor innovation, housing cutting-edge facilities and fostering collaborative endeavors.
Job Opportunities and Economic Impact
In tandem with the spatial expansion, the plan anticipates the creation of 3.46 million job opportunities. This not only injects vitality into the job market but also propels the overall economic landscape.
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Specific Layout of the Super Cluster
Wafer Factory Industry-Exclusive Zone in Banqiao
One of the strategic components of the plan involves establishing a dedicated wafer factory industry-exclusive zone in Banqiao. This focused approach aims to streamline wafer production, fostering efficiency and precision.
Semiconductor Production Facilities in Various Regions
Distributed across Huacheng, Longren, Lichuan, and Pyeongtaek, the semiconductor production facilities signify a comprehensive approach to chip manufacturing. This geographical spread ensures resilience and adaptability in the face of dynamic industry demands.
Industrial Parks for Semiconductor Materials, Components, and Equipment
Anseong is earmarked for the creation of an industrial park dedicated to semiconductor materials, components, and equipment. This holistic approach signifies a concerted effort to fortify the entire semiconductor supply chain.
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Expansion Plans
Current Manufacturing Plants and Addition of New Facilities by 2047
As of now, these regions host 21 manufacturing plants, a number set to surge with the addition of 16 new factories by 2047. This includes not only production facilities but also vital research and development centers.
Samsung Electronics Major Investments
Samsung Electronics, a pivotal player, is set to invest a staggering 500 trillion Korean won in various ventures. This includes the establishment of six new wafer factories, three system and chip factories, and three storage chip research and development facilities.
SK Hynix’s Investment and Production Capacity Targets
On the other front, SK Hynix’s investment of 122 trillion Korean won is earmarked for constructing four wafer factories in Longren. With a production capacity target of 7.7 million wafers per month by 2030, SK Hynix aims to significantly elevate South Korea’s global market share in the non-memory chip sector.
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Government’s Role and Commitments
South Korean Government’s Extensive Investment Plan
The South Korean government’s commitment is reflected in the extensive investment plan of 622 trillion Korean won. This significant financial backing underscores the strategic importance of the semiconductor industry in the nation’s economic trajectory.
Commitment to Increasing Self-Sufficiency
Beyond financial investments, there is a clear commitment to boosting the self-sufficiency of the national key materials, components, and equipment supply chain. The goal is to elevate the current 30% self-sufficiency to an impressive 50% by 2030.
President Yoon Suk-yeol’s Promises
President Yoon Suk-yeol has pledged to extend chip investment tax incentives, originally set to conclude this year. Furthermore, promises of support for infrastructure, including electricity and water supply, demonstrate a holistic approach to facilitating the semiconductor industry’s growth.
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Implications and Competitiveness
Impact of the Super Cluster on South Korea’s Competitiveness
The completion of the semiconductor supercluster is poised to catapult South Korea to the forefront of global competitiveness in the chip sector. This strategic move is expected to not only strengthen the nation’s position but also fuel technological advancements.
High-Quality Employment Opportunities
Minister of Industry and Resources of South Korea, Ahn Dae-geon, emphasizes that completing the early construction of the semiconductor supercluster will provide high-quality employment opportunities for the younger generation. This aligns with the broader goal of fostering a skilled and innovative workforce.
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Conclusion
In conclusion, the Ministry of Industry and Science’s announcement of the semiconductor industry promotion plan, backed by Samsung Electronics and SK Hynix, heralds a new era for South Korea. The ambitious vision of creating the world’s largest semiconductor industry cluster underscores the nation’s commitment to technological excellence and economic prosperity.
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Frequently Asked Questions (FAQs)
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Q: How will the semiconductor supercluster impact job creation?
A: The plan anticipates the creation of 3.46 million job opportunities, providing a significant boost to employment.
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Q: What is the expected global market share for South Korea in the non-memory chip market?
A: With SK Hynix’s strategic investments, the goal is to raise South Korea’s global market share from 3% to 10%.
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Q: How does the government plan to increase self-sufficiency in the semiconductor supply chain?
A: The government aims to increase self-sufficiency by boosting the national key materials, components, and equipment supply chain from the current 30% to an ambitious 50% by 2030. This involves strategic initiatives to strengthen domestic capabilities and reduce dependency on external sources.
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Q: What specific investments does Samsung Electronics plan to make in the semiconductor sector?
A: Samsung Electronics is set to invest 360 trillion Korean won in the southern part of Seoul. This includes the establishment of six new wafer factories, three system and chip factories, and three storage chip research and development facilities.
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Q: How does SK Hynix contribute to the semiconductor supercluster?
A: SK Hynix will invest 122 trillion Korean won to build four wafer factories in Longren, focusing on producing storage chips, HBM, PIM, and other advanced chips. The goal is to achieve a total estimated production capacity of 7.7 million wafers per month by 2030.
