With the presidential office supporting the creation 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 new clusters are expected to involve investments of hundreds of trillions of won in regions such as Honam and Chungcheong, establishing a semiconductor ecosystem that encompasses not only back-end processes but also front-end processes.

Today (June 24), according to industry sources, Samsung Electronics and SK hynix are expected to announce large-scale regional investment plans at a joint public-private meeting to be held at the presidential office at the end of this month, ahead of the launch of the Jeonnam-Gwangju Unified Special City on July 1.

Kim Yong-bum, the presidential chief of staff for policy, said at a Kwanhun Club debate today, "With the current trend of exploding demand [for semiconductors], we are in a situation where we must move up the construction of facilities that had already been planned," adding, "We are nearing the final stages of discussions."

The two chipmakers are highly likely to build both memory semiconductor production plants (front-end processes) and packaging plants (back-end processes) in the newly created semiconductor clusters.

The front-end process is the stage in memory semiconductor manufacturing where circuits are formed on a wafer to create memory cells and devices, while the back-end process is the stage where completed chips are cut, packaged, and tested to become finished products for actual use.

Initially, analysts suggested that while back-end processes were highly likely to be located in regional areas due to their relatively lower infrastructure and investment costs compared to front-end processes, regional investment for front-end processes would be difficult because the scale of investment is incomparably larger and requires a massive ecosystem of suppliers and highly skilled talent.

However, with the unprecedented boom expected to be prolonged—with Samsung Electronics' operating profit projected to reach 1,500 trillion won over the next three years—the push to establish new semiconductor clusters covering both front-end and back-end processes is seen as the two companies rushing to make additional large-scale investments.

SK Group Chairman Chey Tae-won also recently said, "The memory bottleneck is expected to continue until 2030," adding, "We plan to double our semiconductor production capacity on a wafer basis over the next five years."

As the construction and facility investment cost per semiconductor fab (factory) is recently estimated to reach 150 trillion won, some predict that the scale of the two companies' investments this time will far exceed 300 trillion won.

The Honam and Chungcheong regions, currently being considered as potential locations, have advantages in securing land compared to the Seoul metropolitan area and also possess strengths in sourcing renewable energy.

Amid tightening global RE100 (100% renewable energy) regulations, semiconductor factories that require massive amounts of electricity can enhance their regulatory compliance if they can utilize renewable energy such as solar and offshore wind power.

Recently, South Jeolla Province Governor Kim Yung-rok wrote on Facebook, "My heart flutters at the thought of soon seeing semiconductor factories of Samsung Electronics and SK hynix built in our Jeonnam-Gwangju, which has been identifying industrial complexes and steadily preparing for RE100 to attract semiconductor plants."

Specifically, the Gwangju High-Tech 3 District, which is adjacent to Jangseong in South Jeolla Province, is drawing attention.

The High-Tech 3 District is a general industrial complex spanning 3.62 million square meters, being developed with the goal of becoming an artificial intelligence (AI)-based science and technology startup complex and a research-industry convergence complex.

Major transportation networks, including the Honam Expressway, National Route 13, and Bitgoeul-daero, are also closely connected.

The Chungcheong region, including Onyang in South Chungcheong Province, where Samsung Electronics already operates an advanced packaging hub, is also considered a candidate for additional investment.

Chief of Staff Kim said, "Once finalized, we plan to arrange an event where companies and government ministries gather to explain it to the public all at once."