New K-Semiconductor Hubs Planned for Honam and Chungcheong Regions; Investment Plans Nearing Finalization

As the presidential office supports the establishment of regional semiconductor clusters by Samsung Electronics and SK Hynix, detailed investment plans are expected to be announced as early as early next week.
The proposed new clusters are expected to involve hundreds of trillions of won in investments across the Honam and Chungcheong regions, potentially creating a semiconductor ecosystem that encompasses both front-end and back-end processes.
According to industry sources on June 24, Samsung Electronics and SK Hynix are reportedly planning to announce large-scale regional investment plans during a public-private joint meeting to be held at the presidential office later this month, ahead of the launch of the Gwangju-Jeonnam Integrated Metropolitan City on July 1.
Kim Yong-beom, the presidential secretary for policy, stated at a Kwanhun Club debate today, "Given the current trend of explosive demand (for semiconductors), we are in a situation where we must accelerate the construction of facilities that were already planned," adding that "we are in the final stages of discussions."
It is reported that both semiconductor companies are highly likely to build both memory semiconductor production plants (front-end) and packaging plants (back-end) in the newly established clusters.
Front-end processing refers to the stage of forming circuits on wafers to create memory cells and devices during semiconductor manufacturing, while back-end processing involves cutting, packaging, and testing finished chips to create products ready for actual use.
Initially, it was analyzed that while back-end processes were likely candidates for regional investment due to relatively lower infrastructure and capital requirements compared to front-end processes, front-end investments would be difficult to place regionally due to the incomparably larger scale of investment and the need for a massive ecosystem of suppliers and highly skilled personnel.
However, with the semiconductor industry entering a long-term, record-breaking boom—Samsung Electronics' operating profit is projected to reach 1,500 trillion won over the next three years—the companies are rushing to make additional large-scale investments, which is interpreted as the driving force behind the push for new clusters covering both front-end and back-end processes.
SK Group Chairman Chey Tae-won recently remarked, "The memory bottleneck is expected to continue until 2030," adding, "We plan to double our semiconductor production capacity based on wafers over the next five years."
As the construction and facility investment cost for a single semiconductor fab is estimated to reach 150 trillion won, there are projections that the total scale of the companies' investments could significantly exceed 300 trillion won.
The Honam and Chungcheong regions, currently mentioned as potential sites, offer advantages in land acquisition and renewable energy procurement compared to the Seoul metropolitan area.
As international RE100 (100% renewable energy) regulations tighten, semiconductor plants that require massive amounts of electricity can improve their regulatory compliance if they can utilize renewable energy sources such as solar and offshore wind power.
Recently, Jeonnam Governor Kim Yung-rok stated on Facebook, "My heart races at the thought that we will soon see Samsung Electronics and SK Hynix semiconductor plants in our Gwangju-Jeonnam region, which has been diligently preparing for RE100 and identifying industrial complexes to attract semiconductor factories."
Specifically, the Gwangju Cheomdan 3 District, adjacent to Jangseong in South Jeolla Province, is receiving attention.
The Cheomdan 3 District is a general industrial complex spanning 3.62 million square meters, currently being developed with the goal of becoming an AI-based science and technology startup hub and a research-industry complex.
It is also densely connected to major transportation networks, including the Honam Expressway, National Route 13, and Bitgoeul-daero.
The Chungcheong region, such as Onyang in South Chungcheong Province, where Samsung Electronics already operates an advanced packaging hub, is also being cited as a candidate for additional investment.
Secretary Kim Yong-beom stated, "Once finalized, we intend to arrange an opportunity for companies and relevant ministries to gather and explain the details to the public at once."
※ Please note: This article was translated by AI and may contain errors.