Kim Yong-beom: "Semiconductor production capacity is the new national power... The state must play a role in removing industrial bottlenecks"

Kim Yong-beom, Chief Presidential Secretary for Policy at the Blue House, suggested new growth prospects for the Republic of Korea's economy through social networking service posts for two consecutive days. On the 11th, he described advanced semiconductor production capacity as "new national power." On the 12th, he argued that expanding semiconductor production capacity and reforming the capital market are pushing the Korean economy onto a new growth path, under the banner of "Bye-bye, the East Asia stagnation theory." In the process, he repeatedly stressed the need for speed, calling fab expansion a national project.
In a Facebook post late on the 11th, Kim said advanced semiconductor production capacity is the key to national competitiveness in the era of artificial intelligence (AI), adding that "production capacity is the new national power." He also said the state must remove bottlenecks in industrial infrastructure, including electricity, water, transmission networks and permits, so companies can secure production capacity quickly. "What the state must supply first and foremost is time," he said.
Kim said the AI race is turning into a semiconductor race, and the semiconductor race is in turn becoming a production-capacity race. He assessed that major countries around the world have already entered a competition to secure advanced semiconductor production capacity. He added, "The world's major countries no longer see semiconductors as just one industry," and said, "Semiconductors are now strategic assets that determine economic security, industrial sovereignty, military strength and future growth potential."
Kim said the rise in memory demand driven by the AI revolution is a major opportunity for the Republic of Korea's memory industry, but warned that failing to secure production capacity in time could instead create new competitors. He also expressed concern about the possibility of Chinese memory companies catching up. Against that backdrop, he described fab expansion, including the creation of the Honam Semiconductor Cluster, as a national project. "The Yongin Semiconductor Cluster, the expansion of advanced fabs in Pyeongtaek, and the 800 trillion won investment plan for the second cluster in the Honam region cannot simply be seen as corporate facility investment," he said. "They are closer to a massive production-base investment rarely seen in the Republic of Korea's industrial history, and to a national project aimed at securing future production capacity."
He also reiterated that large-scale government support is essential to build stable supply capacity.
"A fab is not only a production facility, but also a base where national industrial capability is accumulated," Kim said. "The state has a responsibility to build and protect the industrial foundation that allows that competitiveness to be realized." He added, "Removing bottlenecks in electricity, water, transmission networks, permits and industrial infrastructure so companies can secure production capacity as quickly as possible is a role only the state can play."


cjk@fnnews.com Choi Jong-geun Reporter