Samsung to Build New Semiconductor Fab in Gwangju; 625 Trillion Won Investment Planned for Yeongnam, Honam, and Chungcheong Regions

Samsung plans to invest 625 trillion won across the Yeongnam, Honam, and Chungcheong regions to foster cutting-edge future industries in the era of artificial intelligence (AI) and to promote balanced regional development.

Including the more than 2 quadrillion won investment in the existing Pyeongtaek and Yongin semiconductor clusters, the total investment plan reaches 2.655 quadrillion won.

Samsung announced the investment plan today (the 29th), outlining these details to respond to the paradigm shift in technology during the AI era and to nurture state-of-the-art future industries.

First, the company plans to invest a total of 425 trillion won (400 trillion won for semiconductors) in the Honam region, which holds significant potential, to foster a global cutting-edge semiconductor cluster, AI data centers, and future energy sectors.

In Gwangju, Samsung Electronics will construct a new semiconductor fab and establish an innovation hub based on digital twins.

Samsung explained, "Building a global cutting-edge semiconductor cluster in Gwangju is intended to respond to the explosively increasing demand for semiconductors," adding, "Among several regions, we are planning Gwangju as the candidate site as we expect many incentives and support, including power, water supply, securing and training talent, and residential conditions."

The company further added, "Once the Gwangju semiconductor cluster is established, it is expected to become one of the two core clusters leading South Korea's semiconductor industry alongside the capital region."

In Haenam, a consortium led by Samsung SDS plans to build the Haenam Solaseado AI Data Center to secure sovereign AI infrastructure.

Samsung C&T also plans to invest in the construction of solar power generation facilities, nuclear-based hydrogen production facilities, and a demonstration complex for green hydrogen research and development (R&D) in the Honam region.

In Gochang, North Jeolla Province, Samsung Electronics will build a global state-of-the-art logistics center.

Furthermore, in the Chungcheong region, Samsung will invest 140 trillion won to advance industries such as HBM (High Bandwidth Memory) fabs, cutting-edge displays, next-generation batteries, and package substrates for AI servers.

In Cheonan and Onyang, Samsung Electronics will invest 56 trillion won to build a state-of-the-art HBM fab.

In Asan, Samsung Display will spend 67 trillion won to construct a production base for next-generation smartphone displays and ultra-high-resolution micro-displays.

In Cheonan, Samsung SDI will establish a global mother factory for next-generation batteries, and in Sejong, Samsung Electro-Mechanics will build a line for cutting-edge package substrates for AI servers.

In the Yeongnam region, Samsung plans to invest a total of 60 trillion won to strengthen its role as a national industrial engine by incorporating AI transformation (AX) and robot transformation (RX) into its core manufacturing sectors.

In Gumi, Samsung Electronics plans to build a mother factory that will serve as an innovation hub for global smartphone manufacturing, along with production lines for physical AI and humanoid robots, while Samsung SDS plans to build an AI data center.

In Busan, Samsung Electro-Mechanics will expand its investment in production for leading-edge Multi-Layer Ceramic Capacitors (MLCC) for next-generation IT devices and automotive electronics, as well as state-of-the-art package substrates.

In Ulsan, Samsung SDI will expand its investment in batteries for next-generation all-solid-state batteries and Energy Storage Systems (BESS).

In Geoje, Samsung Heavy Industries plans to establish a base for building state-of-the-art, high-value-added ships.

In addition, Samsung plans to invest 2.03 quadrillion won in fostering semiconductor clusters, including the Pyeongtaek Campus and the Yongin National Industrial Complex, bringing the total nationwide investment to 2.655 quadrillion won.

Samsung stated, "This investment is expected to contribute to establishing South Korea as a global cutting-edge cluster."

(Photo: Blue House Press Corps, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.