South Korea creates world's largest production of microchips

The South Korean government has approved the construction of the world’s largest semiconductor manufacturing cluster, tentatively named the Korea Semiconductor Manufacturing Complex (KSMC), in Yongin, Azernews reports.

The complex will consist of six large semiconductor fabrication plants, three power plants, and dozens of enterprises involved in the supply of materials, equipment, and components. Spanning an area of 7.28 square kilometers, it will be one of the largest industrial hubs dedicated to semiconductor production in the world.

Originally, the Yongin Semiconductor project was slated for completion no earlier than 2029, but the timeline has been accelerated due to shorter approval processes. As a result, construction will begin in December 2026. To facilitate this rapid development, the South Korean government will start compensating landowners in advance and will also begin upgrading essential infrastructure, including roads, water supply, and electricity systems.

The Yongin Semiconductor initiative is expected to play a pivotal role in the future growth of South Korea's semiconductor industry. Major global chip manufacturers, including Samsung and SK hynix, will operate within the complex, alongside over 60 small and medium-sized enterprises (SMEs). By clustering these entities in one location, the project aims to foster close collaboration between manufacturers and suppliers, streamlining the development of cutting-edge technologies and boosting production efficiency.

The project is expected to attract a staggering 300 trillion won (around $203.75 billion) in private investments. It is estimated to generate 1.6 million jobs and contribute 700 trillion won (about $475.41 billion) in production value to the South Korean economy. In addition to the industrial facilities, residential areas will be built for employees, transforming the area into a self-sustaining city that can accommodate the workers and their families.

This ambitious project underscores South Korea's commitment to maintaining its position as a global leader in the semiconductor industry, while also creating a hub for technological innovation and economic growth.