A government statement said the chip cluster would be located in Gyeonggi province, which is part of the Seoul Metropolitan area, and the total investment would be completed in about 20 years.
In order to protect intellectual property, the country will revise its Industrial Technology Protection Act, according to the statement, which did not offer additional details.
South Korea’s government aims to connect chip facilities in the area from Samsung to other companies to create a “semiconductor mega cluster.” The idea is to link up various parts of the semiconductor supply chain from chip design to manufacturing.
The South Korean government said that companies will build five chip manufacturing facilities in the cluster.
The vast majority of the world’s advanced microchips are made in just two places, Taiwan and South Korea. Taiwan’s industry is larger and more dominant, something South Korea is keen to challenge.
Over the last few years, major economies express concern about losing access to semiconductors, particularly as political and economic tension has escalated between China and the United States.
Governments, including Washington, and major companies like Apple have asked semiconductor companies to localize their operations.
According to cnbc/cnn