According to a report by the Japanese Economic News on July 24, South Korea's government has proposed the concept of a “South Korean version of Silicon Valley” to lay the foundation for the artificial intelligence industry. The government plans to establish a high-end industrial cluster centered around semiconductor factories in Jeolla Province, in the southwest region. This area is a traditional stronghold of the ruling party, which belongs to the progressive camp. The government aims to use the huge national tax revenues generated by semiconductor giants such as Samsung Electronics and SK Hynix to finance this unprecedented infrastructure construction project.
According to Reuters, the South Korean government announced an industrial strategy on June 29, focusing on semiconductors, artificial intelligence, and data centers. The total investment exceeds $576 billion. The government hopes to strengthen South Korea's global competitiveness in the chip industry and promote development in areas outside of the capital region.
According to Reuters, Samsung Electronics and SK Hynix will invest approximately 518.3 billion US dollars to build two new semiconductor factories in the southwestern region of South Korea.
Japanese economic news reports indicate that these factories are planned to start operating by 2030, before President Li's term ends. In addition, Yongin City near Seoul is also building a semiconductor industry cluster, which is scheduled to open in 2027. This means that several large-scale facilities will be under construction at the same time.
Li Zaiming explained that this is 'the only way for South Korea to become the ultimate winner in the fourth industrial revolution.' He also stated that this will become 'the driving force behind transforming the entire country into another Silicon Valley.'
After the project was announced, the government declared Gwangju Airport, which can be used for both military and civilian purposes, as the location for the semiconductor industry cluster. It is expected that land prices in the surrounding area will soar, leading to a rush of real estate developers to invest in this plot of land.
Full Nan Guangzhou Special District Councilor Li Guishun stated: “Although the project has yet to start construction, local communities are filled with anticipation." The district was formed by merging Guang Zhou and Full Luo Nam Dao in July.
Since there are no major industries other than agriculture in the region, many young people travel to Seoul in search of job opportunities. It is estimated that about 10,000 young people go to the Seoul metropolitan area each year. The establishment of the semiconductor industry cluster is expected to create up to 50,000 jobs.
