Kim Jeong-gwan, Minister of Trade, Industry and Energy, made the announcement on June 29 during the National Report Meeting on the Three Major Mega Projects held at the Blue House in Seoul.
"South Korea's potential growth rate has entered the 1% era, and if this trend continues, it is inevitable that we will approach 0% growth," Kim stated. He emphasized the need for the country to take charge of its economic future and not fall behind in the AI revolution.
He outlined plans to transform the southwestern region into a second semiconductor production base, stating, "We will establish four memory fabs through a total investment of 800 trillion won."
To expedite progress, the government has decided to accelerate the construction timeline for existing semiconductor fabs in the Seoul metropolitan area. Kim announced, "Our companies and the government will work together to double the semiconductor production capacity in the metropolitan area within five years, reducing the planned construction timeline from the mid-2040s to as early as the mid-2030s, a maximum reduction of 12 years."
The minister's presentation also included plans to invest 81 trillion won in the Chungcheong region to develop it as a hub for advanced packaging. He explained, "We will cultivate an advanced packaging hub to meet the increasing demand for packaging as semiconductor production capacity expands in the region."
Additionally, Kim noted plans to develop the southeastern and Daegu-Gyeongbuk regions into a supply chain hub for semiconductor materials and components, as well as a center for next-generation innovations such as power semiconductors.
Over the next 15 years, 30 trillion won will be invested in next-generation semiconductor fields. Kim emphasized, "We will support the entire cycle from research and development (R&D) to design, validation, and manufacturing with this investment over 15 years."
The government aims to focus on AI robots as a core component of the physical AI sector. Kim remarked, "Winning the race for AI robots could change the rankings of global manufacturing powerhouses," highlighting the need for a transition to AI in manufacturing and the cultivation of specialized robotics companies.
He stated, "We aim to increase our global market share of humanoid robots from the current 1% to 20%. Through substantial investment and support policies for semiconductors, physical AI, and AI data centers, we will break the cycle of low growth and seize the last opportunity for a major leap forward."
Kim concluded by calling for a collective national effort to win the semiconductor race, urging participation from businesses, universities, and local governments.
* This article has been translated by AI.
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