Yoon: "The Semiconductor Industry Is at War... All Human and Material Support Must Be Fully Deployed" (Update)

Semiconductor Mega Cluster 622 Trillion Won Investment, 3 Million Jobs
Extension of Semiconductor Investment Tax Credit, Commitment to Nuclear Power Plant Construction
Talent Development Itself is R&D... Must Create High Value-Added Products

President Yoon Suk-yeol on the 15th described the fostering and competition of the semiconductor industry as a 'war' and stated that the government will spare no material or human support. Since semiconductors are the core of not only the current industry but also the three major future industries?quantum, advanced bio, and artificial intelligence (AI)?the country must provide full-scale support as if in a war.

On the morning of the same day, at the third public discussion on livelihood held at the Semiconductor Hall of Sungkyunkwan University in Suwon, Gyeonggi Province, President Yoon said, "To become the first mover in the scientific and technological revolution centered on semiconductors, we cannot proceed slowly and naturally; instead, we must fully mobilize all national human, material, and strategic assets to demonstrate fierce speed."

Regarding the economic effects of the semiconductor mega cluster being established in southern Gyeonggi, President Yoon said, "We are initially expecting investments of about 622 trillion won," and "The semiconductor mega cluster formation has already begun, and over about 20 years, it is expected that at least 3 million quality jobs will be newly created." He added, "From this year onward, 158 trillion won will be invested over the next five years alone, creating 950,000 new direct and indirect jobs." He also predicted, "Currently, there are about 180,000 jobs in the semiconductor sector, and once the mega cluster is completed, an additional 70,000 jobs will be created in fabs alone," and "Sales of partner companies in design, post-processing, and materials sectors are also expected to increase by more than 200 trillion won."

[Image source=Yonhap News]

He also emphasized the importance of various policies to promote semiconductor industry investment by companies, establish infrastructure, and nurture talent to win the global semiconductor war.

Regarding the semiconductor investment tax credit, which expires this year, President Yoon introduced, "We plan to extend the legal effect and continue the investment tax credit going forward."

In response to criticisms that the semiconductor investment tax credit is a handout to large corporations, President Yoon strongly refuted, calling it "nonsense." He emphasized, "If semiconductor company investments expand due to the tax credit, the profits and jobs of all companies in the related ecosystem will increase tremendously, and national tax revenue will also increase," adding, "It must be clearly understood that the claim that helping large companies harms the vulnerable is nothing but false agitation."

He also expressed his intention to actively build nuclear power plants to expand the power grid for semiconductor manufacturing processes. Since one semiconductor manufacturing line requires electricity sufficient for 1.4 million people to live, he explained that the power problem cannot be solved by phasing out nuclear power, and other advanced industries cannot be developed either.

President Yoon explained the government's plan to nurture talent for the semiconductor industry. Mentioning investment in human resources development, he said, "Not only semiconductor majors but also internationally competitive talents must be produced in various fields such as engineering, physics, and chemistry to maintain a super-gap," and emphasized, "Research and development (R&D) investment is ultimately an investment in people." He added, "Only when our industrial structure produces very expensive, high value-added products that others cannot make can all our people live better than those in other countries."

The discussion included about 20 semiconductor major students, semiconductor-related company representatives such as Lee Woo-kyung, president of ASML Korea, academia including Professor Kwon Seok-jun of Chemical Engineering at Sungkyunkwan University, researchers such as Senior Researcher Lee Jeong-hyun of KIST, and about 50 citizens including local residents of Yongin City, Gyeonggi Province.

From the government, Minister Lee Jong-ho of the Ministry of Science and ICT, Minister Ahn Deok-geun of the Ministry of Trade, Industry and Energy, Chief Secretary Bang Ki-seon of the Office for Government Policy Coordination, and from local governments, Mayor Lee Sang-il of Yongin, Mayor Kim Kyung-hee of Icheon, and from the Presidential Office, Chief Secretary Lee Gwan-seop, Policy Chief Seong Tae-yoon, and Economic Chief Park Chun-seop were present.

This content was produced with the assistance of AI translation services.