As discussions around attracting semiconductor factories to the Honam region gain traction, experts emphasize the need for comprehensive support beyond site selection.
On June 17, industry sources noted that the potential investments from Samsung Electronics and SK Hynix in Honam have brought attention to the need for local semiconductor infrastructure. Analysts suggest that the focus may shift towards backend processes and packaging, which are crucial for AI semiconductor performance and offer more flexibility in site selection compared to frontend fabrication plants.
A key consideration is power supply. Without a stable electricity supply, semiconductor packaging plants cannot operate effectively. The increasing demand for AI semiconductors and the growth of data centers have put additional strain on power grids, making it essential for local factories to be accompanied by enhancements to regional power networks. Partnerships with renewable energy sources and long-term power supply contracts could also significantly influence corporate investment decisions.
Water supply and logistics are equally critical. Semiconductor manufacturing requires high-quality water and effective wastewater treatment systems. Accessibility to ports, airports, and highways for transporting finished products, materials, and equipment is vital. With Gwangju, Jeonnam, Saemangeum, and Muan being considered as potential sites, each region must present a competitive operational package that integrates power, water, and logistics rather than merely competing for land.
Tax incentives are also necessary. To attract investments or encourage relocations, measures such as investment tax credits, local tax reductions, support for site development costs, and expedited permitting processes must be offered. For companies, the long-term operational stability is more critical than the initial construction costs. This indicates a need for regulatory frameworks that lower long-term operational expenses rather than just focusing on one-time relocation competitions.
Regarding workforce supply, experts believe that the high salaries offered by both companies will mitigate significant challenges. However, there is a pressing need to establish a system for training practical semiconductor talent that can be deployed locally.
Samsung is working with local science and technology institutes, such as GIST, to establish semiconductor contract programs aimed at nurturing talent outside the capital region. The Gwangju Human Resources Development Center is also running educational programs for semiconductor-related fields, including AI semiconductor design specialists. Moving forward, there is a consensus that local universities and vocational training institutions should expand their curricula to develop personnel skilled in packaging, testing, equipment, and quality control.
An industry insider stated, "While packaging plants have greater potential for regional dispersion than frontend fabs, it is essential to prepare for power, logistics, and workforce development simultaneously. Local governments must go beyond simply providing land and offer operational packages that can attract companies."
* This article has been translated by AI.
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