South Korean President Lee Jae-myung is set to hold a pivotal meeting with Samsung Electronics Chairman Lee Jae-yong on Thursday. This high-level discussion comes as the government finalizes plans for a significant semiconductor investment package, strategically located beyond the crowded Seoul metropolitan area, aiming to bolster Korea’s global chip industry leadership.
The agenda for this crucial meeting will encompass Korea’s forward-looking semiconductor strategy, the integration of artificial intelligence (AI) in chip development, and vital regional development initiatives. Discussions are anticipated to cover substantial investments in new chip manufacturing plants and advanced semiconductor facilities across the southwest Honam and Chungcheong regions.
Under the Lee administration, there’s a strong governmental push to establish a monumental second semiconductor cluster. This new hub will complement the existing, rapidly expanding semiconductor facilities centered in Yongin, Pyeongtaek, and Icheon in Gyeonggi Province, as well as Cheongju in North Chungcheong Province, ensuring sustainable growth for the South Korean chip industry.
Kim Yong-beom, presidential chief of staff for policy, confirmed on Wednesday that discussions surrounding this new regional semiconductor cluster were nearing completion.
“We are nearing the final stage of discussions. There will likely be an opportunity to explain it soon,” Kim stated during a forum hosted by the Kwanhun Club in Seoul.
Chief of Staff Kim Yong-beom underscored that this ambitious proposal is distinctly not intended to replace or relocate any facilities from the existing Yongin semiconductor cluster, which is currently undergoing significant construction. Rather, the objective is to strategically secure additional land and robust infrastructure, vital for accommodating the anticipated explosive future growth of the nation’s semiconductor sector.
“Given the unprecedented and explosive global demand for semiconductors, we believe accelerating the completion of the Yongin cluster is paramount,” Kim stated. He further clarified, “The ongoing regional investment discussions are a strategic forward-looking initiative, envisioning the development of a second, complementary semiconductor cluster seven to eight years into the future.”
Sources within the industry confirm that the proposed plans for the Honam and Chungcheong regions are remarkably comprehensive. They are expected to encompass not only state-of-the-art advanced chip packaging facilities but also cutting-edge front-end semiconductor fabrication plants (fabs), which would dramatically expand the strategic scale and technological capability of this national project.
This expanded scope naturally implies a dramatic increase in the necessary investment. With a single advanced semiconductor fabrication plant alone estimated to command at least 60 trillion won (approximately $40 billion USD), industry analysts project that the combined investments from South Korean giants Samsung Electronics and SK hynix could ultimately soar to an astounding 300 trillion won to 400 trillion won (around $200-$267 billion USD).
President Lee Jae-myung previously engaged with SK Group Chairman Chey Tae-won last week, where discussions on similar pivotal issues affecting the semiconductor industry and national strategy were understood to have taken place. Furthermore, both Samsung Electronics and SK hynix are slated to participate in a significant public-private collaborative meeting later in June, chaired by President Lee, focusing on the government’s overarching regional development strategy for South Korea.
According to informed industry sources, President Lee Jae-myung is tentatively scheduled to visit Asan, South Chungcheong Province, on July 2, where he is expected to publicly unveil the comprehensive details of this monumental semiconductor investment initiative. Concurrently, SK Group Chairman Chey Tae-won is anticipated to visit Gwangju on June 30, a trip directly linked to investment plans for new semiconductor facilities in the region.
These strategic discussions are central to the administration’s broader vision: to forge a robust southern semiconductor belt and vigorously promote balanced regional growth across South Korea. This will be achieved through the establishment of innovative new industrial clusters, strategically located beyond the traditionally capital-centric regions, cementing the nation’s future as a global semiconductor powerhouse.
