South Korean President Lee Jae-myung unveiled three flagship mega-projects totaling $576 billion aimed at cementing the country’s position as a global semiconductor and AI powerhouse. The plan encompasses construction of 10 new semiconductor fabrication plants, a dedicated advanced packaging hub, and a massive AI data center zone.
The semiconductor component calls for 800 trillion won ($544 billion) in investment through 2047 to build new fabs primarily in the southwestern region, with Samsung Electronics and SK Hynix as anchor tenants. The packaging hub, valued at 81 trillion won ($55 billion), targets advanced packaging technologies essential for high-bandwidth memory and AI accelerator production.
The AI data center mega-project will utilize over 50,000 of Nvidia’s most advanced GPUs, leveraging participation from Samsung, SK Group, and Hyundai Motor to create what the government describes as the world’s largest concentrated AI computing cluster.
President Lee framed the initiative as a national economic survival strategy, warning that South Korea must move faster than competing hubs in the US, China, Japan, and Europe. The projects will be supported by tax incentives, streamlined permitting, and expanded R&D tax credits for chip design and manufacturing.
