South Korea Urges 'Lightning War' Pace for Semiconductor Mega-Projects

South Korea is intensifying efforts on its 'mega-project' initiative, centered on semiconductors, physical artificial intelligence (AI), and AI data centers, aiming to catalyze significant industrial advancement. President Lee Jae-myung, chairing the second joint public-private review meeting, called for an approach that goes beyond a "war of speed" to a "lightning war."

President Lee specifically pointed to the 800 trillion won Honam semiconductor cluster as an example, urging its execution with a speed comparable to Taiwan's TSMC plant in Kumamoto, Japan. The TSMC Kumamoto facility, from announcement to mass production, took approximately two years and eight months, facilitated by a 40% government subsidy and close collaboration between the Japanese government, Kumamoto prefecture, and the company. This included rapid land acquisition, permitting, environmental assessments, and direct provision of industrial water and roads, with 24-hour construction schedules.

This contrasts sharply with TSMC's Arizona plant, announced in 2020, which has faced significant delays due to labor shortages, permitting issues, and labor union disputes, taking more than double the time to reach mass production compared to Kumamoto. To avoid repeating past mistakes, such as the six-year delay in SK Hynix's Yongin semiconductor plant, the Honam project, targeting mass production by June 2028, requires seamless coordination among businesses, the government, local authorities, and the community.

Success hinges on concentrating efforts on the most critical aspects, including expediting permitting processes and support legislation to potentially break ground next year on sites outside the airport. The government also plans to introduce incentives, such as easing the 52-hour workweek for advanced industries under the proposed Mega Special Zone Act, to encourage corporate investment. Similar mega-projects are planned for the Chungcheong region (246 trillion won) and Yeongnam (107 trillion won), with planned groundbreaking this year. Despite South Korea's dominance in global memory semiconductors, its self-sufficiency in materials, parts, and equipment stands at only 30%, highlighting the need for these mega-projects to strengthen the supply chain.