South Korea announced a massive 700 trillion won investment on Wednesday to boost its semiconductor sector. The government emphasized that the semiconductor expansion plan will strengthen the country’s AI-driven chip production capacity. Consequently, officials argued it will help maintain long-term global competitiveness.
Industry Minister Kim Jung-kwan briefed President Lee Jae Myung on the comprehensive strategy during a meeting at the presidential office. Moreover, the plan includes building ten new semiconductor fabs by 2047 and expanding research initiatives to support innovation. Officials said the semiconductor expansion plan responds to rising AI demand and international industry competition.
President Lee highlighted semiconductors as critical for economic growth and reducing reliance on imported components. Additionally, he stressed that the semiconductor expansion plan encourages regional development across southern cities. Around forty industry representatives and government officials attended the briefing to discuss implementation and future milestones.
The government detailed key R&D investments under the semiconductor expansion plan, including 1.27 trillion won for AI chips. Furthermore, 215.9 billion won is allocated for next-generation memory chips, and 620 billion won supports compound semiconductors and packaging. Officials are also reviewing a 4.5 trillion won foundry project under a public-private partnership to support domestic designers.
Regional growth forms a central component of the semiconductor expansion plan. Gwangju will host an advanced packaging cluster, Busan will develop a power semiconductor hub, and Gumi will focus on chip component production. Linking these cities will establish an industrial belt that strengthens southern regional development.
President Lee encouraged companies to invest in the southern region, citing its renewable energy potential. He also emphasized that active participation from industry will determine the success of the semiconductor expansion plan.
The government’s five-year roadmap forecasts chip exports will rise twenty percent by 2030, surpassing 170 billion dollars. Additionally, the plan aims to cultivate at least ten AI chip manufacturers while advancing high-bandwidth memory and neural processing technologies.
Analysts said the semiconductor expansion plan positions South Korea to maintain global leadership in AI chip production. Moreover, officials pledged ongoing support through regulatory measures, talent development, and innovation incentives to ensure long-term success.
