While the government is pushing for a plan to create a second semiconductor cluster in a provincial area outside the Seoul metropolitan area, relevant discussions have entered the final stage. Cheong Wa Dae maintains the position that the Yongin semiconductor cluster will proceed as planned, while an additional production base will be established in a province as semiconductor demand explodes amid the global boom in fostering the artificial intelligence (AI) industry. Together with relevant companies, they plan to unveil a detailed blueprint as early as next week. Specifically, Jeonnam-Gwangju is reported to be the most likely candidate.
Kim, policy chief of Cheong Wa Dae, attended the Kwanhun Club Invitational Discussion held at the Press Center in Seoul on June 24 and said, “You should not say that (the semiconductor cluster in Yongin) is going to a province. It is not moving what is here (in the metropolitan area),” adding, “It is about creating a new cluster (in a province).”
Kim stated that the Yongin semiconductor cluster is being pushed forward as planned, and an additional semiconductor factory is being created in a province. The reason he emphasized “additional creation” rather than “relocation” is because some are concerned that the construction of the semiconductor cluster currently underway in the metropolitan area will be stopped and relocated to a province.
In addition, he believes that an additional semiconductor cluster is necessary in a situation where the demand for semiconductors is explosively increasing as the AI industry attracts attention worldwide.
Kim said, “It is true that serious discussions are taking place between the two companies and the government,” adding, “It is absolutely not a matter of not building what was decided to be built in Yongin and going to a province.” In particular, he said, “The claim of why starting another discussion when it is being built in Yongin is a statement made without knowing the characteristics of the industry,” adding, “Under the current trend, as demand (for semiconductors) explodes, we are in a situation where we have to advance the construction of facilities that had already been announced.”
He also mentioned, “What is being built in the metropolitan area must be advanced and completed. It is too late if we push forward after watching the completion of everything in Yongin,” adding, “We must prepare even for the period after that, but (after advancing the construction) there is no more land, power, or water in the metropolitan area.”
The most promising region where the additional semiconductor cluster is expected to be created is Jeonnam-Gwangju, where an administrative integration system will be launched for the first time in the country this coming July. This is because power is abundant, including nuclear power, solar power, and wind power. Specifically, the High-tech District 3, created across Gwangju and Jangseong in Jeonnam, and Solaseado in Haenam are considered top priority candidate sites.
In political circles, it is reported that Samsung Electronics Co., Ltd. and SK hynix Inc., among others, will announce specific plans together with Cheong Wa Dae and the government as early as next week.
Kim said, “There are two important (private) companies (Samsung Electronics and SK hynix) amid the AI revolution, and (the companies) have a concern about having to find a second cluster, and the government is at a stage of seriously discussing how to support power and water,” adding, “It is not the beginning, but now we are in the latter half and at the finishing stage.”
He subsequently added, “Once it is confirmed, a venue will be arranged where companies and ministries gather all together to explain to the public,” adding, “The government must support the two companies so that they can secure memory production capacity in a timely manner, so that the AI revolution that has started now can proceed without a hitch worldwide.”
