South Korea aims to double semiconductor capacity within five years

South Korean President Lee Jae Myung has announced a strategic goal to double the nation's semiconductor production capacity within the next five years. Speaking at the Korea Investment Summit 2026 in New York, Lee emphasized the need to expand domestic manufacturing hubs to meet the surging global demand for artificial intelligence (AI) chips.

The expansion plan includes accelerating construction at the Yongin semiconductor cluster south of Seoul and developing new production centers in the southwest. A major component of this strategy involves establishing a second large-scale semiconductor cluster in Gwangju and the Jeolla provinces. This new cluster is expected to include four memory chip factories, with total corporate investment estimated at approximately 800 trillion won (about $518 billion).

President Lee also called for the development of AI supply chains capable of withstanding external volatility and urged American companies to increase their investments in South Korea. The government intends to reinvest profits from the AI chip industry into infrastructure and workforce training for emerging industries to solidify the country's position in the global technology supply chain.