South Korea declares 'semiconductor war,' pledges 100% facility funding

South Korea is mobilizing a national effort to secure its semiconductor industry's competitiveness, framing the strategy as a "three-front war" focused on speed, strategic locations, and market leadership. The government plans to shorten the fab expansion timeline in the Seoul metropolitan area by up to 12 years and establish four new fabs in the southwestern region.

President Lee Jae-myung will personally chair semiconductor-related meetings, and the Minister of Trade, Industry, and Energy has been designated as the "semiconductor czar" to oversee the speed initiative. This role, inspired by the U.S. "AI czar," aims to streamline infrastructure development and resolve corporate challenges for semiconductor clusters.

A special law, effective in August, will establish a presidential committee for semiconductor competitiveness. This committee will review and approve matters related to infrastructure, deregulation, and rapid permitting for semiconductor clusters. The government aims to double semiconductor production within five years, with the President directly overseeing the accelerated completion of these clusters.

Funding for these initiatives will be supported by a special account, with unspent budget allocations carrying over to the next fiscal year. The Ministry of Trade, Industry, and Energy has proposed a decree for the special law that includes up to 100% government funding for critical infrastructure like underground power grids, water recycling facilities, and renewable energy installations. The "semiconductor czar" will also have the authority to provide full funding for other necessary facilities.