Home / Business and Economy / Power, Water Woes Threaten $540 Billion Chip Hub
Power, Water Woes Threaten $540 Billion Chip Hub
21 Jul
Summary
- A $540 billion semiconductor hub faces opposition over energy and water needs.
- Local residents object to new transmission lines and a dam expansion.
- Infrastructure challenges could delay the project past the 2030 goal.
South Korea aims to establish a substantial semiconductor industrial complex in its southwest region by 2030, a key initiative for President Lee Jae Myung to broaden economic benefits from the AI chip boom. This ambitious project, estimated at 800 trillion won ($540 billion), requires significant new energy and water resources.
However, local communities are raising strong objections. Residents cite concerns over the massive power demands, potentially increasing regional electricity consumption by 70-80%, and oppose new transmission lines or nuclear reactors. Plans to raise an existing dam for water supply have also faced backlash due to a lack of consultation.
Past infrastructure projects, like those in Yongin, have already encountered delays due to similar power and water issues. Experts warn that without accelerated infrastructure development, meeting the 2030 deadline for the new hub will be challenging. The government states it will work with local authorities to build necessary infrastructure and gain public acceptance.
