All-out efforts needed to survive global chip competition
Make every effort necessary to survive in the global semiconductor competition
South Korea is seeking to set up a massive semiconductor cluster in Yongin, Gyeonggi Province, with Samsung Electronics pouring in some 300 trillion won ($229 billion) by 2042. The world’s largest high-tech chip complex is aimed at sharpening the nation’s prowess in non-memory chip technologies such as system chips, the trade and land ministries said, unveiling the plan during a Cabinet meeting Wednesday.
The government is promoting a plan to create a large-scale semiconductor cluster in Yongin, Gyeonggi Province by 2042 with an investment of about 300 trillion won by Samsung Electronics. The world’s largest high-tech semiconductor complex is intended to further improve non-memory chip technologies such as system semiconductors, the Ministry of Commerce, Industry and Energy and the Ministry of Land, Infrastructure and Transport said Wednesday when announcing the plan at a cabinet meeting.
Despite its competiveness in the memory chip sector, Korea has lagged behind in system chips. Given this, Samsung will construct five more chip plants in addition to existing factories in southern Gyeonggi Province. The ministries said the complex will become an unprecedented chip mega cluster.
Despite being competitive in the field of memory chips, Korea lags behind in the field of system chips. Therefore, Samsung Electronics plans to build five additional semiconductor factories in addition to the existing factories in the southern region of Gyeonggi Province. The government said the site would be an unprecedented large-scale cluster.
The Yoon Suk Yeol administration is also planning to provide full-fledged support to nurture six strategic industries — semiconductors, displays, batteries, bio, electric cars and robots — and build high-tech industrial parks in 15 locations across the country. In areas outside the Seoul metropolitan area, Samsung will invest an additional 60 trillion won. The president vowed to take all possible measures to facilitate businesses’ investment activities. “The high-tech industry is a core growth engine (for the national economy) and a strategic asset for national security,” Yoon said during the meeting.
The Yoon Seok-yeol government also plans to foster six strategic industries, including semiconductors, displays, batteries, biotechnology, electric vehicles, and robots, and provide full support for the creation of high-tech industrial complexes in 15 locations across the country. Samsung plans to invest an additional 60 trillion won outside the metropolitan area. President Yoon promised to do everything possible to promote business investment activities. President Yoon said at the meeting that the high-tech industry is a key growth engine (for the national economy) and a strategic asset for national security.
The decision is welcome in that it comes amid an intensifying hegemony war between the United States and China surrounding chips. The U.S. has been mounting pressure on its allies to join its initiated chip alliance, coercing them with seemingly “excessive” requirements. Against this backdrop, it has been essential for Korea to be equipped with competitive edges in the high-tech sector such as the chip industry.
This decision is welcome as it came amidst a fierce war for supremacy on the peninsula between the US and China. The United States, which is leading the Semiconductor Alliance, is putting pressure on its allies to join the alliance, and is apparently imposing “excessive” requirements. In this situation, it is essential for Korea to be competitive in high-tech fields such as semiconductors.
Despite the dire need to tackle the daunting challenges, the nation has largely failed to take proper steps. For starters, it has yet to remove diverse regulations standing in the way of investment. Concern is also growing over the possible weakening of growth momentum ahead of the looming Fourth Industrial Revolution, buffeted by a swiftly decreasing population amid low fertility rates coupled with rapid aging.
Despite the pressing need to meet the daunting task, South Korea has largely failed to act appropriately. Above all, it did not remove various regulations that hindered investment. As the population rapidly shrinks due to a low birth rate and rapid aging, concerns are growing that the growth engine may weaken ahead of the Fourth Industrial Revolution.
Given this, an increasing number of enterprises have been avoiding investing in the local market, rushing to overseas destinations. The chip industry has been most vulnerable to such challenges.
For this reason, many companies have preferred to invest abroad while reluctant to invest in the domestic market. The semiconductor industry is most vulnerable to these challenges.
The high-tech complex has been inevitable for the production of system chips. Samsung has been under growing pressure from the Biden administration to build more plants in the U.S. Yet it has failed to construct a single plant here since 2014 when it completed the Pyeongtaek campus. This has been chiefly due to various regulations regarding land use and taxation.
A high-tech park was inevitable for the production of system semiconductors. Samsung has been under pressure from the Biden administration to build more factories in the United States. Since completing the Pyeongtaek campus in 2014, it has not built a factory in Korea. This was mainly due to various regulations regarding land use and taxes.
Samsung needs to double down on taking the lead in the production of system semiconductors by introducing state-of-the-art manufacturing processes. The Yoon government should focus on helping companies construct plants at the earliest date possible. Lawmakers in the National Assembly should also roll up their sleeves to facilitate investments.
Samsung Electronics should redouble its efforts to take the lead in system semiconductor production by introducing advanced processes. The Yoon government should focus on helping companies build factories as quickly as possible. The National Assembly should also be more active in promoting investment.
In this vein, it is fortunate to see the main opposition Democratic Party of Korea (DPK) shifting its stance to support the relevant companies. Albeit belatedly, the ruling People Power Party (PPP) and the DPK agreed to pass a bill for the provision of tax benefits to chip companies next month.
In this context, it is fortunate that the Democratic Party of Korea, the main opposition party, is shifting its stance toward supporting the company. The ruling party, the Power of the People and the Democratic Party of Korea agreed to pass a bill that provides tax benefits for semiconductor companies next month, albeit belatedly.
The U.S. and EU are desperate to nurture the chip industries by offering huge amounts of subsidies to the plants in their territories. Japan has recently designated the chip sector as its strategic industry.
The US and EU are desperate to foster the semiconductor industry by providing huge subsidies to their factories. Japan recently designated the semiconductor sector as a strategic industry.
March 17 (Fri) The Korea Times editorial
KEY WORDS
■ massive
■ unveil (a new plan, etc.) to announce
■ unprecedented unprecedented
■ full-fledged fully developed, fully qualified
■ Facilitately[용이하게] do
■ coerce (threaten) to coerce[강제하다]
■ be equipped with
■ looming coming, coming soon
■ vulnerable (to)
■ double down on
■ designate
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