The government aims to achieve the completion of the Southwest semiconductor cluster by 2030, but experts are urging a shift from traditional sequential administrative processes to a "one-stop fast track" approach. They warn that without simultaneous efforts in securing factory sites, establishing power and water networks, and creating favorable living conditions for talent, reaching the production goal by 2030 will be nearly impossible.
At a policy forum titled "Success of the Southwest Semiconductor Cluster" held on July 8 in the National Assembly building in Yeouido, participants unanimously emphasized the need for speed. They stressed that repeating the administrative and infrastructure bottlenecks experienced during the construction of the existing semiconductor cluster in the capital region must be avoided.
Kim Sang-mook, head of the Korea Photonics Technology Institute, noted, "Yongin has been processing site acquisition, compensation, environmental assessments, power, and water sequentially for nearly seven years, yet construction is still ongoing. The Southwest region must adopt a one-stop fast track approach to handle site compensation, environmental impact assessments, power, water networks, roads, and construction procedures in parallel."
The Southwest cluster must adhere to an even tighter timeline than previous fab constructions. The integrated special city of Jeonnam and Gwangju plans to begin related procedures in July 2026, aiming to complete four fabs within 3.5 to 4 years and start production by 2030.
The government agrees that the existing project methods will not meet this timeline. Kim Sung-yeol, director of the Industrial Growth Division at the Ministry of Trade, Industry and Energy, stated, "With the rapid selection of sites, we plan to expedite subsequent processes such as industrial complex development. Our goal is to simultaneously advance all aspects, including power and workforce, to cut the time previously taken by two to three times."
The TSMC factory in Kumamoto, Japan, was cited as a prime example of speed. It was completed just 22 months after construction began, thanks to government subsidies and infrastructure support from both central and local governments. However, issues related to transportation and infrastructure shortages arose during the construction of the Kumamoto 2 plant. The Southwest region must learn from these existing cases and carefully design infrastructure capable of supporting all four fabs from the outset.
Power and water supply issues were identified as critical prerequisites. Kim emphasized, "The key is not just the amount of power but building the power grid in line with the fab's operational timeline. We need to expand 345 kV transmission lines and substations, as well as establish a redundant power supply network." Semiconductor fabs operate 24/7, and even brief voltage instabilities can disrupt production, necessitating multiple layers of stability measures.
Securing skilled labor is also an essential task that must be addressed alongside construction. Advanced semiconductor fabs require experienced engineers during the initial equipment installation and production line setup, making it difficult to operate without relocating talent from the capital region.
Kim noted, "The equipment cost for a fab worth 200 trillion won could reach 150 trillion won, and we cannot rely solely on new hires to operate it. The focus for initial talent acquisition should be on retention rather than training," highlighting the importance of creating favorable living conditions. A support package that includes housing, education, healthcare, and transportation is necessary to attract skilled engineers and their families.
There is also a need to establish a local talent development system. The Southwest region currently lacks sufficient educational and research infrastructure to support advanced memory processes. The four fabs are expected to directly employ around 30,000 people, but there is a high likelihood of short-term labor mismatches.
Professor Maeng Jong-seon from the Semiconductor Research Institute at Chonnam National University stated, "Universities should collaborate to establish a shared fab and develop field-oriented training tailored to corporate needs. Additionally, expanding semiconductor contract programs, corporate-linked curricula, and incentives to attract top talent, such as military service exemptions, should be considered."
Local governments have called for legal and institutional support. Cho Hyun-ho, head of the AI Semiconductor Division in the integrated special city of Jeonnam and Gwangju, said, "We need to establish a dedicated support system for companies through amendments to the integrated special law and semiconductor special law, as well as a permanent secretariat. Furthermore, national support for key infrastructure such as power, water, roads, and wastewater treatment should be strengthened, and incentives for investing companies and their partners should be expanded."
Meanwhile, Jeong Cheong-rae, a former leader of the Democratic Party and a candidate for party leadership, stated, "The Southwest semiconductor cluster is a key driver for Korea's future, and it is a project that must succeed with the cooperation of the government, businesses, and citizens, regardless of political affiliation or demographics. The party will actively support this initiative and ensure that there are no delays that could hinder progress, and I will also take an active role in this effort."
* This article has been translated by AI.
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