S. Korea to set up world's No. 1 semiconductor cluster in Seoul metropolitan area

SEOUL, March 15 (Yonhap) -- South Korea will create the world's largest semiconductor cluster in Yongin, located in the Seoul metropolitan area, by earmarking 300 trillion won (US$229.81 billion) as part of efforts to secure a competitive edge in the sector and to further the country's economic growth momentum, the industry ministry said Wednesday.

It is part of the government's comprehensive plan to promote six key industries -- chips, displays, secondary batteries, bio, future vehicles and robots -- which also called for the corporate investment of 550 trillion won by 2026, according to the Ministry of Trade, Industry and Energy.

The envisioned cluster of system semiconductors will be set up in Gyeonggi Province, which is expected to harbor five advanced chip fabrication facilities and around 150 materials, parts and fabless companies by 2042.

The new complex will be located near existing chips facilities run by Samsung Electronics Co. and SK hynix Inc., as well as a number of parts and equipment companies, and fabless firms, so that the country will be able to have the world's largest mega cluster for semiconductors according to the plan, the ministry said.

The government is also pushing to invest 3.2 trillion won by 2030 in the development of technologies for next-generation semiconductors needed for power generation, vehicles and artificial intelligence, among other things.

It also aims to nurture 10 fabless firms with annual sales of over 1 trillion won by extending support for their prototype production, the ministry said.

"The mega cluster will have the whole semiconductor value chain," the ministry said in a release. "The government will implement measures to become a global leader in the system semiconductor industry without a hitch in close cooperation with companies."

graceoh@yna.co.kr
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