South Korea's Minister of Trade, Industry and Energy announced a national semiconductor cluster plan, investing 800 trillion KRW (about 3.52 trillion RMB) to build four memory fabs in the southwestern region, aiming to double DRAM production within five years. This massive investment reinforces South Korea's dominance in the global memory chip market, especially as demand for DRAM is expected to surge fourfold in five years. It positions the country to lead in speed and capacity, potentially reshaping the semiconductor supply chain. The plan includes building a second semiconductor base in the southwestern region, with total investment of 800 trillion KRW over an unspecified timeframe. Additionally, the government will invest 30 trillion KRW over 15 years to support the initiative.
Background
South Korea is a global leader in semiconductor memory, particularly DRAM and NAND flash, with companies like Samsung and SK Hynix. The semiconductor industry is a critical part of South Korea's economy, and the government has been actively investing to maintain competitiveness against rivals like Taiwan and China. DRAM is used extensively in computing, mobile devices, and emerging technologies like AI and data centers.