Lee launches Korea’s AI Industrial Revolution in Gwangju
President Lee Jae Myung embarked on a journey to Gwangju to promote the southwestern region of South Korea as the nucleus for the nation’s forthcoming “AI Industrial Revolution.” This initiative would entail substantial investments in semiconductors, artificial intelligence data centers, and related industries. A substantial investment plan was revealed by the government, Samsung Electronics, and SK hynix on Monday, focusing on semiconductors, AI data centers, and physical AI in three megaprojects.
During the event in Gwangju, an elaborate vision for advanced industries in the southwestern region was unveiled. Major chipmakers disclosed plans to invest a staggering 896 trillion won ($578 billion) in the area, with a significant portion allocated to constructing four memory chip fabs. President Lee, in his prepared remarks, expressed his determination to foster a “Korean-style artificial intelligence industrial revolution” originating from the southwest region and proliferating globally.
President Lee highlighted the southwest’s advantages as a potential chip and AI hub, citing factors like abundant renewable energy, robust transport infrastructure, and a thriving AI ecosystem. He emphasized the importance of the Special Semiconductor Act, which would be instrumental in launching a specialized committee on semiconductor competitiveness in August. The President assured his personal involvement in overseeing the committee’s operations to ensure seamless execution without delays.
Lee underlined the government’s unwavering support to facilitate companies in transitioning their innovative ideas into tangible outcomes. An array of measures, ranging from financial and tax support to prioritizing critical infrastructure development, including industrial sites and utilities, were slated for implementation. The Honam region in southwestern South Korea was earmarked to receive substantial investments under the national development initiative, aiming to establish a second semiconductor manufacturing cluster in addition to the existing hub in Gyeonggi Province.
The event witnessed Samsung Electronics and its affiliates pledging investments totaling 425 trillion won for the construction of two memory chip fabs and a national AI computing center. SK hynix, on the other hand, outlined plans to allocate about 470 trillion won towards establishing two fabs and a 1-gigawatt AI data center, alongside Amkor Technology Korea’s proposed expansion of advanced semiconductor packaging operations in the region.
During his address, President Lee refuted criticisms that the investment disproportionately favored his party’s traditional stronghold. He reasoned that the strategic investment in the southwestern region aimed to rectify longstanding regional imbalances and bridge the developmental gap between different parts of the country. Lee emphasized the significance of achieving more balanced regional growth in line with his administration’s primary policy goal.
The President’s visit to Gwangju was the inaugural stop on his regional tour, with forthcoming visits planned for Asan and Jinju to outline development strategies for other key growth hubs. The tour would shed light on the government’s commitment to fostering advanced industries and achieving balanced regional development throughout South Korea.