As Samsung Electronics and SK Hynix prepare to make significant investments in the semiconductor sector in the Honam region, industry attention is focused on the specifics of location, timing, and scale. In anticipation of a meeting between the president and business leaders at the end of this month, both companies are finalizing their plans to align with the government's regional balanced development initiatives.
According to sources from relevant ministries and the industry on June 17, Samsung and SK Hynix are conducting final internal reviews regarding their local semiconductor investment strategies targeting the Honam area. With the Semiconductor Special Act set to take effect in August, which specifies 'regional balanced development' as a criterion for cluster designation, companies are accelerating their efforts to secure policy benefits such as infrastructure cost support and tax reductions.
Key candidate locations include Gwangju's Advanced 3 District, Saemangeum in North Jeolla Province, and areas in South Jeolla Province, including Muan and Haenam. The Advanced 3 District in Gwangju is advantageous due to its AI-based industrial infrastructure and data centers, facilitating research and development (R&D) connections. It is also praised for its comprehensive transportation network, including the Honam Expressway, National Route 13, and Bitgoeul Road, making it an optimal site for semiconductor logistics.
Samsung is particularly considering the Advanced 3 District in Gwangju. Last November, during its acquisition of the European Flakt Group, Gwangju was identified as a potential site for establishing domestic production lines. The addition of semiconductor investment aims to maximize the clustering effect, integrating the core industrial ecosystem in the Honam region.
Saemangeum offers large, affordable land and a robust power grid, positioning it as a strong candidate for semiconductor facilities, following Hyundai Motor's establishment there. The area already has essential infrastructure for a large water supply system, and logistics networks, including new ports and airports, are being developed, enhancing its competitiveness as a global export hub. Haenam and Muan are also seen as ideal locations due to their 5.4 GW solar power complex, meeting the RE100 (100% renewable energy) requirements sought by major global tech companies.
The primary focus for investment will be on advanced packaging lines, which are crucial for next-generation memory performance, including high-bandwidth memory (HBM). The importance of post-processing has grown, especially with global post-processing company Amkor Technology already established in Gwangju. This aligns with the government's plan to create an advanced packaging cluster within the 'Southern Innovation Belt,' promising significant synergy.
The total investment is expected to exceed 19 trillion won for each company. Samsung has allocated several trillion won for the expansion of its advanced packaging facility in Onyang, while SK Hynix has earmarked an initial budget of 19 trillion won for its new P&T7 facility in Cheongju, which began construction in April. Experts believe that the scale of investment required for infrastructure development in the Honam region will far exceed these initial estimates.
However, some concerns have been raised regarding these investment plans. A mega-cluster worth hundreds of trillions of won is already being developed in the southern part of the capital region, including Yongin and Pyeongtaek. There are concerns that additional investments in the Honam region could disrupt the existing semiconductor ecosystem centered in the capital region, making organic collaboration challenging due to geographical dispersion.
Despite these concerns, this investment is viewed as a win-win for both companies and the region. For businesses, it allows them to align with the government's balanced development agenda without disrupting core processes in the capital region. Additionally, they can benefit from substantial tax incentives and affordable land, minimizing investment risks while maximizing returns.
Lee Jong-hwan, a professor at Sangmyung University’s Department of System Semiconductor, emphasized, "While anchor investments from large corporations are important, the simultaneous entry of material, parts, and equipment suppliers is essential. Tailored talent development centered around local universities and comprehensive infrastructure support from the government must align to realize the actual investment benefits."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.