President Lee Unveils 215.9 B Won AI‑Chip Drive and Regional Expansion Plan
Updated (3 articles)
Nationwide Revitalization Announced at Presidential Office On December 10, 2025, President Lee Jae Myung addressed senior executives from Samsung Electronics, SK hynix, and industry experts in Seoul, declaring a government‑wide push to boost South Korea’s semiconductor sector for the AI era [1][2]. He framed the initiative as essential to maintaining global technological leadership and cited the need for “broader and deeper” investment rather than narrow, short‑term gains [1][2]. The announcement followed a strategic meeting scheduled for the same day to detail the roadmap [3].
215.9 B Won Funding Targets Next‑Gen Memory and AI Chips Industry Minister Kim Jung‑kwan presented a plan to allocate 215.9 billion won by 2032 toward next‑generation memory technologies, including AI‑optimized chips [1][2]. The funding aims to preserve Korea’s dominance in memory while expanding capabilities in system semiconductors and AI‑specific designs [1][2]. Officials highlighted that such capital is crucial for scaling foundry capacity and competing with Taiwan’s advanced nodes [1].
Southern Regions and Renewable Energy Sites Prioritized Lee urged corporations to invest outside the Seoul metropolitan area, pointing to southern provinces rich in renewable energy as ideal locations for new semiconductor ecosystems [1][2]. The government pledged tax incentives, regulatory easing, and infrastructure upgrades to attract corporate capital to these zones [1][2]. This regional shift is intended to diversify economic growth and reduce concentration of high‑tech activity in the capital [1][2].
Supply‑Chain Independence Emphasized Through Local Materials The president stressed reducing reliance on imported equipment, materials, and parts, noting current dependence on U.S. and Japanese suppliers [1][2]. SK hynix CEO Kwak Noh‑jung called for relaxed financial rules to enable large‑scale domestic investment in these upstream segments [1]. Lee confirmed that reforms to cross‑ownership regulations are near completion, balancing anti‑monopoly safeguards with the need for a resilient supply chain [1].
Sources
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1.
Yonhap: Lee vows support for semiconductor ecosystem in global AI race – Details Lee’s pledge, 215.9 billion‑won investment, balanced regional growth, and import‑reduction strategy, emphasizing government commitment to AI‑driven semiconductor leadership .
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Yonhap: Lee vows support for semiconductor ecosystem in global AI race – Mirrors the same announcement with added focus on structural imbalances in the memory‑centric industry and the need for broader ecosystem development .
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Yonhap: Lee to preside over meeting on plans to promote AI chips – Describes the December 10 strategic meeting, the integrated road map presented by Minister Kim, and specific goals for memory, foundry capacity, and AI‑chip design .
Timeline
2020s – South Korea’s semiconductor sector generates the bulk of its profits from memory chips at Samsung and SK hynix, while non‑memory segments lag and the industry remains dependent on U.S. equipment and Japanese material imports, prompting a strategic need to catch Taiwan’s foundry capacity. [1][2]
Dec 9, 2025 – President Lee Jae Myung announces he will preside over a high‑level meeting on Dec 10 with senior executives of Samsung Electronics and SK hynix, where Industry Minister Kim Jung‑kwan will unveil an integrated government roadmap targeting memory, foundry, chip‑design expansion and AI‑optimized semiconductors. [3]
Dec 10, 2025 – At the presidential office, Lee pledges “we will do our utmost” to boost the semiconductor ecosystem for the AI era, using a “dig‑two‑well” metaphor to stress broader, deeper investment and promising tax, regulatory and infrastructure incentives for regional expansion, especially in renewable‑rich southern provinces. [1][2]
Dec 10, 2025 – Lee stresses the urgency of reducing import reliance on materials, parts and equipment, and notes that practical measures to ease cross‑ownership rules are “near completion” while preserving antitrust safeguards. [1]
Dec 10, 2025 – Industry Minister Kim Jung‑kwan unveils a 215.9 billion‑won investment program through 2032 to develop next‑generation memory technologies and AI‑optimized chips, aiming to sustain Korea’s memory leadership and expand its system‑semiconductor capabilities. [1][2]
Dec 10, 2025 – SK hynix CEO Kwak Noh‑jung urges the government to relax financial rules to enable large‑scale AI‑demand capacity expansion, while Samsung’s Jeon Young‑hyun proposes a public‑private fund to attract corporate investment and deepen domestic partnerships. [1]
Dec 10, 2025 – Lee calls for balanced development beyond the Seoul metropolitan area, promising “bold policies” to spur corporate investment in new semiconductor ecosystems located in the south’s renewable‑energy hubs. [1][2]
2025‑2032 – The 215.9 billion‑won funding slated for 2025‑2032 will underwrite next‑gen memory and AI chip projects, forming a core pillar of South Korea’s strategy to maintain global leadership in AI‑driven semiconductor technology. [1][2]