South Chungcheong Province announced Wednesday that it has been selected for the Ministry of Trade, Industry and Energy's (MOTIE) "AI Optical Semiconductor Core Component Manufacturing Base Construction" project, and will build an industrial ecosystem in Asan to secure a first-mover position in the next-generation AI semiconductor market.
The project is one of 100 tasks across seven sectors outlined in the "South Chungcheong AI Grand Transformation Strategy," announced by Governor Kim Tae-heum at the province's AI special committee on March 18. The selection is expected to signal that the province's AI transformation has entered a full-scale implementation phase.
Given that semiconductors — the core foundation of artificial intelligence — are the province's flagship industry, South Chungcheong has incorporated six semiconductor-related tasks among the 100 AI transformation initiatives, with a concentrated investment of 103.4 billion won ($76 million) planned.
Optical semiconductor technology is drawing attention as a next-generation core technology that processes signals using light, which is tens of times faster than conventional electricity-based semiconductors, enabling high-volume data transmission.
The province plans to invest a total project budget of 14.3 billion won — comprising 10 billion won in central government funding and 4.3 billion won in local government funding — to build a next-generation AI optical semiconductor manufacturing base within the Smart Modular Center currently under construction in Tangjeong-myeon, Asan.
The Smart Modular Center is a key infrastructure facility being developed with an investment of 484 billion won through 2028 to foster an inorganic light-emitting display ecosystem.
The province expects to achieve synergy effects by concentrating both display and AI optical semiconductor infrastructure in a single location.
The Korea Photonics Technology Institute will serve as the lead organization, overseeing optical semiconductor equipment installation and prototype production support. The Korea Electronics Technology Institute will handle reliability evaluation and technical problem-solving, while Hoseo University will be responsible for training specialized personnel.
The project is expected to serve as a critical bridgehead for developing northern South Chungcheong into an AI semiconductor industry hub, in conjunction with the "Advanced Semiconductor Back-End Process Materials, Parts and Equipment Testbed Construction" project and the "Semiconductor Materials, Parts and Equipment Specialized Complex" initiative, both currently open for public bidding.
Starting with this project, the province plans to build a corporate ecosystem within the region and collaborate closely with universities and government-funded research institutes in the Chungcheong area, including Daejeon and Sejong, to complete a national semiconductor value chain beyond regional boundaries.
"We plan to focus on fostering semiconductors as South Chungcheong's specialized industry in connection with the government's advanced industry development policies," a provincial official said. "We will converge the optical technology accumulated in the region to secure a first-mover position in the next-generation semiconductor industry, and will leverage the province's advanced industry capabilities to the fullest to drive regional economic development."