Chip exports fell for 6 months in a row, South Korea still invested 300 trillion won: building the world‘s largest semiconductor cluster
South Korea is one of the largest semiconductor countries in the world. It occupies a large share of memory and flash memory chips. It is a key product for South Korea’s exports. However, South Korea’s chip exports have declined in the past six months, and the profits of chip giants such as Samsung and SK Hynix have plummeted. Even loss.
Due to the decline in the chip market, companies such as Toshiba in Japan, Western Digital in the United States, and Micron in the United States plan to reduce production to reduce losses. However, South Korea does not intend to reduce production capacity in this wave of bear market, and even invests counter-cyclically.This Wednesday, the Korean Ministry of Industry, Trade and Resources announced the largest semiconductor investment plan in history.
South Korea will invest 300 trillion won (about 1.6 trillion yuan) to build the world‘s largest semiconductor cluster in Gyeonggi-do,It is estimated that by 2042, Gyeonggi Province will have 5 advanced chip manufacturing plants and more than 150 materials, components and fabless enterprises.
This park will rely on Samsung and SK Hynix’s existing semiconductor factory infrastructure and supporting parts and equipment supply chains.
It is estimated that by 2030, South Korea will invest another 3.2 trillion won in the development of next-generation semiconductor technologies needed for power generation, automobiles, and artificial intelligence.
South Korea also plans to foster 10 fabless companies with annual sales exceeding 1 trillion won by expanding support for prototype production.
In addition, chips are only part of this round of large-scale investment plans in South Korea. Among the goals set by South Korea, in addition to semiconductor technology, there are also industries such as display panels, secondary batteries, biotechnology, automobiles and robots, a total of 6 core areas. The investment is as high as 550 trillion won, and the chip industry is the most important of them.