South Korea unveiled plans by leading companies such as Samsung Electronics Co. and SK Hynix Inc. to spend $471 billion to create the world’s largest chip manufacturing cluster, writes Bloomberg.

The government has unveiled a plan that envisages this investment from the private sector through 2047. This money will be used to build 13 new chip fabs and three research centers in addition to the existing 21 facilities.

The territory is expected to cover areas from Pyeongtaek to Yongin. It will be the largest in the world and will be able to produce 7.7 million products per month by 2030.

The Korean government is stepping up support for the domestic chip manufacturing sector, which accounts for about 16% of total exports. It has vowed to protect the backbone of its economy while fighting growing global competition.

While Japan and Taiwan are investing in their own chip manufacturing industries, the Korean government is committed to providing significant tax incentives to local chip companies.