With the construction of the mega center, South Korea can gain 10% of the global market, the huge cluster can be completed by 2047 in Yongin, Gyeonggi Province and provide employment to 3.5 million people.
South Korea’s latest plan is to transform one of its provinces, which happens to be Gyeonggi, into a semiconductor mega-hub with 16 factories to gain global dominance in chip manufacturing. With this step, it can dominate 10% of the global market segment after its completion. The government’s plans include significant infrastructural support that ensures continuous electricity and water supply, and also provides tax exemptions for chip technologies.
With plans to significantly boost semiconductor exports, South Korea is setting the stage for a technological renaissance that could reshape the industry’s global landscape and provide 3.46 million jobs in the future. The country focuses on industrial growth, and the synergy between the giants of the private sector and the government suggests this. 622 trillion won ($471 billion) is earmarked for the project, of which the construction of 6 factories is related to Samsung, the cost of which is 360 trillion won, i.e. half of the total investment. SK Hynix is next in line with its 122 trillion won investment, which means the creation of 4 chip factories.
In terms of employment, the large-scale Korean plan could also be called a “job factory”, the construction phase alone will provide more than 70,000 jobs, with a total of almost 3.5 million job opportunities. President Yoon Suk Yeol has repeatedly touted a strong economy supported by high-tech industries, which could easily become a reality with this mega-project.
Among Yool’s plans is the country’s self-sufficiency in key raw materials, by 2030 they want to work with 50% of their own materials, thereby exposing their economy to less danger from supply chains that have been ailing lately.
A project of this scale requires meticulous planning, especially when it comes to providing utilities. The South Korean government guarantees that the new cluster will receive adequate energy, which will be largely from nuclear power plants, to ensure uninterrupted operation. In addition, the Korean Ministry of Trade, Industry and Energy promises sufficient water supply, which is a critical element of semiconductor manufacturing, and tax incentives to promote innovation in chip technologies also support its creation.
The impact of the new cluster goes beyond economic metrics. Lee Jong-ho, Korea’s Minister of Science and ICT, highlighted that South Korea could take a leading role in an industry where precision is the most important thing after construction. With the country expected to acquire 10 percent of the global semiconductor market, it would increase its market share and influence the direction of technological trends.