South Korea is in the final stages of selecting a site for a new semiconductor manufacturing cluster, according to the government.

The move aims to accelerate the production of AI-related chips and secure the nation's standing within the global semiconductor supply chain. As demand for artificial intelligence grows, the government is moving to solidify its infrastructure to remain competitive against global rivals.

Kim Yong-beom, the Presidential Chief of Staff for Policy, said the development during a session hosted by the Kwanhun Club in Seoul on Wednesday. The government is currently finalizing the location for what will be the second [1] semiconductor chip cluster in the country.

"We are in the final stages of selecting a site for the new chip cluster and expect to announce the decision soon," Kim said.

The urgency of the project is driven by the rapid evolution of the AI market. According to a presidential adviser, the surge in AI demand could potentially pull the construction timeline forward by a decade [1]. This acceleration reflects the critical need for high-performance computing hardware to support emerging technologies.

While the specific location has not yet been disclosed, the selection process involves evaluating regional infrastructure, and the ability to support large-scale manufacturing operations. The project is expected to integrate various stages of the chip production process to streamline the supply chain.

“"We are in the final stages of selecting a site for the new chip cluster and expect to announce the decision soon."”

The push for a second semiconductor cluster indicates South Korea's strategy to pivot aggressively toward AI-specific hardware. By accelerating construction timelines and expanding its manufacturing footprint, Seoul is attempting to mitigate risks associated with global supply chain volatility and ensure it remains a primary hub for the next generation of chip architecture.