South Korea's Lee orders fast-tracking of $576B chip projects as Samsung and SK Hynix pledge mega AI investments

South Korea chip projects: South Korea's Lee urges speed in launching mega chip projects

"In this ⁠situation, it ⁠appears the outcome will be decided by who moves faster and who secures the lead first," Lee told a government meeting. "Only speed matters." South Korean President Lee Jae Myung on Monday ordered officials to move quickly to get to work on major chip and AI projects announced last week. He warned that delays in permits, land acquisition, and securing power and water supply could undermine the country's bid to dominate advanced industries. "In this ⁠situation, it ⁠appears the outcome will be decided by who moves faster and who secures the lead first," Lee told a government meeting. "Only speed matters." Lee noted that it had taken six years for the Yongin industrial complex to go from site confirmation to ground being broken and that had been considered relatively fast. He called ⁠for environmental reviews and other approval processes to be shortened where possible. Lee said procedures that are usually handled sequentially ⁠should instead be pursued at the same time. Lee called for power and water infrastructure to be secured preemptively, saying electricity would be a particularly important issue for chip projects. Lee said companies had raised concerns about baseload power supply even though there has been an expansion in renewable energy, and ordered officials to address those concerns in advance. South Korea last week unveiled more than $576 billion in investment including in chip and AI industries aimed at securing global dominance and encouraging growth ⁠beyond the Seoul metropolitan area. Samsung Electronics and SK Hynix will each invest 400 trillion won ($260 billion) to build new chip manufacturing sites each in the southwest of the country, while another 81 trillion won is expected to be invested in a chip-packaging cluster in the Chungcheong region. Lee also said government officials and corporate executives should begin discussing specific sites for the projects.

Lee calls for prompt execution of chip cluster, AI investment projects - The Korea Times

President Lee Jae Myung speaks during a government-private meeting at Cheong Wa Dae, Monday, to discuss follow-up measures to the government's investment projects on semiconductors, physical artificial intelligence (AI) and AI data centers. Yonhap President Lee Jae Myung on Monday called for the prompt execution of the government-led large-scale chip cluster and AI investment projects by expediting administrative procedures, including streamlining environmental impact reviews. The president made the call at a meeting with senior government officials and top executives of leading chipmakers -- Samsung Electronics Co. and SK hynix Inc. -- to discuss follow-up measures for the investment projects. Last week, the government unveiled the "three mega projects" initiative, centered on large-scale investments in semiconductors, physical artificial intelligence (AI) and AI data centers, as the country bets big on those advanced industries for its future. In particular, the government plans to establish a semiconductor production cluster in the southwestern Honam area, with Samsung and SK pledging to invest a combined 800 trillion won ($522 billion). "The world is witnessing very intense competition, while an entirely new future is being shaped around AI," Lee said in his opening remarks. "At a time when all-out competition that will determine the nation's fate is under way, who moves first and who moves faster will be the deciding factor," he added. The president called on the government to preemptively identify and tackle potential obstacles to implementing the projects so that companies can focus solely on investment and operations. "Investments should never be delayed because of delays in administrative procedures," he said, calling for streamlining mandatory environmental impact reviews for the chip cluster plan, among other measures. To expedite the projects, each mandatory administrative procedure should be carried out simultaneously rather than sequentially, the president said. Efforts to secure electricity and water supplies for the envisioned chip cluster should also begin immediately, instead of waiting until other preliminary procedures are complete, he said. "Inside Cheong Wa Dae, (I) will promptly establish a team dedicated to the mega projects," Lee said, pledging his utmost support for their successful implementation. The president also called on participating government and corporate officials to promptly determine the sites that will host the investment projects.