S. Korea unveils plan to build ‘semiconductor mega cluster’ by 2047

South Korea on Monday unveiled its plan to establish what it calls a “semiconductor mega cluster” in southern Seoul by 2047 by promoting a total investment of 622 trillion won (US$472 billion) with Samsung Electronics Co. and SK hynix Inc.

The envisioned cluster, which includes various industrial zones throughout southern Gyeonggi Province, will boast a total area of 21 million square meters and post a monthly production capacity of 7.7 million wafers by 2030, according to the joint statement by the industry and science ministries.

In detail, the government plans to establish exclusive zones for the fabless industry in Pangyo, along with foundry and memory chip production facilities in Hwaseong, Yongin, Icheon and Pyeongtaek.

South Korea will also build an industrial zone for material, part and equipment businesses in Anseong, with research and development facilities in Giheung and Suwon.

Under the plan, the area, which currently houses 21 fabrication facilities, will host 16 additional fabs by 2047, including three for research.

“By completing the construction of the semiconductor mega cluster at an earlier period, we will obtain the world’s leading competitiveness in the chip sector and offer quality jobs for younger generations,” Industry Minister Ahn Duk-geun said.

In detail, Samsung Electronics Co. plans to invest a total of 500 trillion won for the project, including the 360 trillion-won budget for six new fabs in Yongin, 33 kilometers south of Seoul.

The country’s top chipmaker will also invest 120 trillion won to build three new fabs in Pyeongtaek, 54 kilometers south of Seoul, along with three research fabs in Giheung with 20 trillion won.

No. 2 chipmaker SK hynix will allocate 122 trillion won to build four new fabs in Yongin, according to the ministry.

Based on the investment from the private sector, the government plans to have the complex boast world-class production capacity focusing on cutting-edge products, including chips with a 2 nanometer process and high bandwidth memory.

The ministry added the 622 trillion-won project will eventually create 3.46 million jobs during the process.

South Korea will take up 10 percent of the global market for non-memory chips by 2030 as well, rising sharply from the current estimate of 3 percent.

Along with the construction of the mega cluster, the government vowed to support the ecosystem by advancing the country’s self-sufficiency in the supply chain of key materials, parts and equipment to 50 percent by 2030 from the current estimate of 30 percent.

Other policy support includes launching a testbed for suppliers of chip-related materials, parts and equipment at the Yongin complex by 2027, where companies can test-run their products.