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Samsung to build world’s largest semiconductor cluster in Korea

Samsung to build world’s largest semiconductor cluster in Korea

Posted March. 16, 2023 07:52,   

Updated March. 16, 2023 07:52


The government will foster the world’s largest system semiconductor cluster by attracting private sector investment of 300 trillion won by 2042. The government also plans to build 15 high-tech industrial complexes across the nation in semiconductors, futuristic cars, nuclear energy, and space industries. By easing various regulations, including development-restricted areas (such as green belt), to match the level of competitor nations, the government plans to attract corporate investment of 55 trillion won by 2026 in six businesses, including semiconductors, displays, and secondary cells.

President Yoon Suk Yeol led the 14th Contingency Economic Council Meeting on Wednesday and announced that the government would work with more than 150 materials/parts/equipment businesses and Fabless companies in Pangyo to build the world’s largest semiconductor mega cluster. The government plans to attract five chip fabrication plants and 150 materials/parts/equipment businesses, and fabless companies (semiconductor design) in the semiconductor cluster. It will connect with existing semiconductor production centers in Giheung, Hwaseong, Pyeongtaek, and Icheon to operate as a mega-cluster. Companies that join the cluster will be waived of acquisition tax and property tax and enjoy eased business approval and increased floor area (1.4 times of other industrial complexes).

Samsung Electronics announced on the same day that it would invest 300 trillion won over the next 20 years to build a system semiconductor cluster in Yong-in. Once the Yong-in cluster is finished, Samsung Electronics will have a semiconductor production delta belt connecting Giheung, Hwaseong, and Yongin. Indirect production impact is expected to be around 4 trillion won and expected to hire around 1.6 million.

The government will also foster 15 high-tech industrial complexes for futuristic cars, nuclear energy, and robotics. The total area will cover 40.76 million square meters, the largest of its kind in the nation. Upon designation, national industrial cluster areas will be subject to the highest degree of deregulation and receive government support to build infrastructure.

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