South Korea to Create World's Largest Semiconductor Cluster - Presidential Office

SEOUL (Sputnik) - South Korea will create the world's largest semiconductor cluster, aiming to draw investments worth up to 300 trillion won ($230 billion) as part of the efforts to increase the country's competitiveness in the global economy, the South Korean presidential office said on Wednesday.

The cluster would be located in the central province of Gyeonggi-do near Seoul, with five leading chip manufacturers and around 150 companies involved in the production of chip components expected to operate there by 2042, the office said, adding that the cluster would cover all the supply chain of semiconductors.

"Advanced industries are main factors for growth, a tool to ensure security and a strategic asset, which is directly connected to jobs," President Yoon Suk-yeol said, as quoted in the statement.

The South Korean president detailed that the cluster would be part of the government plan on developing six key industries, including biotechnology and semiconductors, with the expected investment in the project amounting to 550 trillion won by 2026.

The nation's government also intends to attract around 3.2 trillion won in investments by 2030 to produce next-generation semiconductors used for the development of artificial intelligence and advanced vehicles.

The government will step up its deregulation efforts to help companies engage in the project more actively and reduce time needed for the creation of industrial capacities for semiconductors, the presidential office stated.