As discussions about 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 by Samsung Electronics and SK Hynix in Honam have brought attention to the necessity of developing local semiconductor infrastructure. Analysts suggest that the focus may initially be on backend processes and packaging rather than front-end fabrication. Packaging has emerged as a critical process influencing AI semiconductor performance, and it offers greater flexibility in site selection compared to front-end fabs.
A key factor is power supply. Without a stable power source, semiconductor packaging plants cannot operate effectively. The increasing demand for AI semiconductors and the rise of data centers have placed additional strain on power networks, making it essential for local factories to coincide with regional power grid expansions. Partnerships with renewable energy sources and long-term power supply contracts will also be significant considerations for corporate investment decisions.
Water supply and logistics are equally important. Semiconductor processes require high-quality water and effective wastewater treatment systems. Accessibility to ports, airports, and highways for the movement of finished products, materials, and equipment is crucial. 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 highlights the need for a regulatory framework that reduces long-term operational expenses rather than focusing solely on one-time relocation incentives.
Regarding workforce supply, analysts 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 developing talent outside the capital region. The Gwangju Human Resources Development Center is also offering training programs for semiconductor-related roles, including experts in neural processing unit (NPU) AI design. Moving forward, there is a consensus that local universities and vocational training institutions should expand their programs to cultivate talent in packaging, testing, equipment, and quality control.
An industry representative stated, "While packaging plants may have more potential for regional distribution than front-end fabs, it is essential to prepare for power, logistics, and workforce development together. Local governments must go beyond merely providing land and present a viable operational package to encourage corporate investment."
* This article has been translated by AI.
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