South Korea to Accelerate Major Chip and AI Projects

South Korean President Lee Jae-myung has directed the government to accelerate the nation's significant chip and artificial intelligence (AI) projects. The directive stems from concerns that delays in project approvals, land acquisition, and infrastructure development could jeopardize South Korea's global leadership ambitions in these critical sectors.

During a government meeting, Lee emphasized that victory in the current competition hinges on speed and securing early advantages. "Speed is the only important factor," he stated. The president urged officials to streamline approval processes, including environmental assessments, and to shift from sequential to parallel project execution. He underscored the crucial role of a stable power supply for the successful implementation of chip manufacturing projects.

The directive follows last week's announcement of South Korea's substantial investment plan exceeding $576 billion in the chip and AI sectors. The goal is to solidify the country's global standing and foster development outside the Seoul metropolitan area. Key components include significant investments by Samsung Electronics and SK Hynix in new chip production facilities in the southwestern region.

The comprehensive plan also allocates 81 trillion won (approximately $61 billion) for the development of a chip packaging industry cluster in the Chungcheong region. Kang Sang-mok, acting chief of staff to the president, indicated that a former military airport site in Gwangju is being considered for the southwestern chip cluster, with potential co-location for both Samsung and SK Hynix.