Samsung Electronics and SK Hynix are expected to announce detailed investment plans for regional semiconductor clusters as early as early next week.

The new clusters, involving investments of hundreds of trillions of won in the Honam and Chungcheong regions, are being discussed as a comprehensive semiconductor ecosystem that covers not only back-end processes but also front-end processes.

According to industry sources on Wednesday (June 24), Samsung Electronics and SK Hynix are expected to announce their large-scale regional investment plans on the occasion of a public-private joint meeting to be held at the Blue House 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 on the same day, "With demand exploding under the current trend, we are in a situation where we must pull forward the construction of facilities that had already been announced," adding, "We are nearing the final stages of discussions."

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

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

Initially, analyses suggested that while back-end processes had a high likelihood of regional investment due to 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 partner companies and high-tech talent.

However, with an unprecedented super-cycle expected to be prolonged—to the extent that Samsung Electronics' projected operating profit for the next three years is estimated to reach 1,500 trillion won—the push to establish new semiconductor clusters encompassing both front- and back-end processes is interpreted as the two companies rushing additional large-scale investments.

SK Group Chairman Chey Tae-won also said recently, "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."


With the construction and facility investment costs per semiconductor fab (factory) recently estimated to reach 150 trillion won, outlooks suggest that the scale of this investment by the two companies could significantly exceed 300 trillion won.

The Honam and Chungcheong regions, which are currently being mentioned as candidate sites, have advantages in securing land and sourcing renewable energy compared to the Seoul metropolitan area.

Amid tightening global RE100 regulations, if semiconductor factories requiring massive amounts of electricity can use renewable energy such as solar and offshore wind power, they can enhance their ability to respond to regulations.

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

Specifically, Gwangju's Cheomdan 3 District, which is adjacent to Jangseong in South Jeolla Province, is drawing attention.

Cheomdan 3 District is a general industrial complex spanning 3.62 million square meters, being developed with the goal of becoming an artificial intelligence-based science and technology startup complex and a research-industry 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 occasion where companies and government ministries gather to explain it to the public all at once."

(Photo: Yonhap News)