South Korea is finalizing plans to establish additional semiconductor clusters in provincial regions to promote balanced national development [1].
This initiative seeks to reduce the heavy concentration of semiconductor manufacturing within the capital region. By expanding infrastructure into other provinces, the government aims to distribute economic growth, and technological hubs more evenly across the country [2].
Kim Yong-beom, the Blue House policy secretary, said the strategy during a Kwanhoon Club invited forum held at the Press Center in Jung-gu, Seoul [1]. He addressed reports regarding the potential relocation of existing projects, clarifying that the semiconductor cluster currently under construction in Yongin will not be moved [1].
Kim said that the existing Yongin site will proceed as planned while the government focuses on adding new capacity elsewhere [2]. He said that the Honam and Chungcheong regions are being considered as potential sites for a second semiconductor cluster [2].
Regarding the timeline for these new developments, Kim said that discussions concerning the next locations are a reality and are currently in the final stages [1]. The strategy involves maintaining the primary hub in Yongin while simultaneously building out the regional network to ensure the industry's long-term stability [2].
The move comes as South Korea continues to compete globally in the AI and semiconductor sectors. By diversifying the geographic footprint of its chip production, the government intends to mitigate risks associated with over-centralization in a single metropolitan area [2].
“Discussions on creating additional regional semiconductor clusters are nearly finished.”
The South Korean government is attempting to balance high-tech industrial growth with regional equity. By adding clusters in Honam and Chungcheong without abandoning the Yongin project, Seoul is pursuing a 'hub-and-spoke' model to prevent the capital region from becoming a single point of failure while stimulating economic activity in underdeveloped provinces.
