Yoon: "Semiconductor Competition Is a National All-Out Effort... AI Semiconductor to Leap to G3"

Chairing the 'Semiconductor Issue Review Meeting'
"The Future of the Semiconductor Industry Depends on AI"

President Yoon Suk-yeol is speaking at the semiconductor issue review meeting held on the 9th at the Yongsan Presidential Office building in Seoul. [Image source=Yonhap News]

President Yoon Suk-yeol stated on the 9th, "The semiconductor competition is an 'industrial war' and a 'total national effort,'" adding, "To establish a total response system equivalent to a wartime situation, the government will conduct a comprehensive review of investment incentives for attracting the semiconductor industry." This comes as the United States and Japan have launched large-scale support for Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, with South Korea also aiming to provide bold support measures for domestic companies to compete globally.

In particular, he announced the establishment of the 'National AI Committee' directly under the president and accelerated the creation of the world's largest semiconductor mega cluster worth 622 trillion won, aiming to increase the global system semiconductor market share to over 10% by 2030.

On the morning of the same day, President Yoon presided over the 'Semiconductor Issue Review Meeting' at the Yongsan Presidential Office, stating, "Just as we dominated the world with memory semiconductors over the past 30 years, we will write a new semiconductor legend with AI semiconductors for the next 30 years," and added, "We will leap to become one of the G3 (top three countries) in AI technology." He emphasized, "We will comprehensively compare and analyze the investment environments and support systems of major countries and prepare bold support measures tailored to South Korea's circumstances."

Yoon: "Preparing Bold Support Measures Tailored to Korea's Circumstances"

The meeting was convened to review global semiconductor supply chain trends following the recent partial shutdown of TSMC's operations and to discuss the progress of the semiconductor mega cluster initiative and AI semiconductor initiatives announced at the 3rd Public Livelihood Forum in January.

In his opening remarks, President Yoon evaluated, "Last month, semiconductor exports reached their highest level in 21 months, revitalizing the entire industry," and noted that although the impact of TSMC's partial line shutdown is not yet significant, due to high uncertainty, relevant ministries should closely monitor the situation, re-examine any vulnerabilities in our semiconductor supply chain, and respond immediately without delay if government action is required.

He then reviewed the infrastructure construction status?including power, water supply, housing, and transportation?for the 622 trillion won world's largest semiconductor mega cluster announced at the 3rd Public Livelihood Forum and urged relevant ministries to ensure smooth follow-up measures.

President Yoon pledged that the government will take responsibility for supplying essential electricity and industrial water for the semiconductor mega cluster, starting with the groundbreaking of the Yongin National Industrial Complex by 2026. He stated, "We finalized the power supply plan in December last year to meet the demand exceeding 10GW (gigawatts)," and added, "The pipeline stretching 48 km from Paldang Dam to Yongin was exempted from preliminary feasibility studies in February and will soon begin installation work." Regarding living infrastructure, he explained that the semiconductor highway will complete its private investment eligibility review by the end of this year, and the recently opened GTX-A (Great Train Express) line will add Guseong Station in June.

President Yoon Suk-yeol is speaking at the semiconductor issue review meeting held on the 9th at the Yongsan Presidential Office building in Seoul. [Image source=Yonhap News]

Furthermore, President Yoon remarked, "The semiconductor market has recently shifted its focus rapidly to 'AI semiconductors,'" evaluating that it is no exaggeration to say the future of the semiconductor industry depends on AI. Since few countries possess both hardware manufacturing and software development/utilization capabilities like South Korea, the country must strive to dominate the AI semiconductor market. To this end, President Yoon directly presented the strategic direction of the 'AI-Semiconductor Initiative' and expressed his ambition to leap to the G3 in AI technology.

Establishment of 'National AI Committee'... "Will Personally Oversee"

President Yoon stated, "We will significantly expand research and development (R&D) investment in AI and AI semiconductors and establish a large-scale fund to support the growth of innovative AI semiconductor companies," setting the goal of achieving over 10% of the global system semiconductor market share by 2030, when the semiconductor mega cluster is expected to be fully operational. He also expressed his intention to personally oversee the national AI strategy by establishing the 'National AI Committee,' emphasizing the importance of public-private cooperation.

During the subsequent discussion, key companies in the semiconductor sector and ministers from relevant ministries engaged in in-depth discussions on topics such as the global semiconductor supply chain, semiconductor clusters, and AI semiconductors.

Attendees from the private sector included Lee Jung-bae, President of Samsung Electronics; Kwak No-jung, CEO of SK Hynix; Choi Soo-yeon, CEO of NAVER; and Ryu Soo-jung, CEO of Sapeon Korea. Government participants included Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance; Ahn Deok-geun, Minister of Trade, Industry and Energy; Lee Jong-ho, Minister of Science and ICT; Han Hwa-jin, Minister of Environment; and Park Sang-woo, Minister of Land, Infrastructure and Transport. From the Presidential Office, Lee Kwan-seop, Chief of Staff; Sung Tae-yoon, Policy Chief; Park Chun-seop, Senior Secretary for Economic Affairs; and Park Sang-wook, Senior Secretary for Science and Technology also participated.