The government announced it will finalize discussions on the placement of production facilities (fabs) for companies in the Honam semiconductor cluster this month and proceed with site agreements. It emphasized the need to expedite the establishment of infrastructure, such as power and water supply, to maintain the goal of starting production in 2030.
Kim Jeong-kwan, Minister of Trade, Industry and Energy, stated during a meeting of the National Assembly's Special Committee on Budget and Accounts on November 10 that "how companies arrange their fabs is a very important situation," adding, "If we can wrap things up to some extent in November, we will likely hold a ceremony for the industrial complex agreement."
On the same day, Democratic Party lawmaker Jo In-cheol raised concerns about the lack of visible progress since the announcement of the Honam semiconductor cluster plan in June and questioned the specific timeline for its implementation. He mentioned delays in the residents' vote regarding the relocation of the Gwangju military airport and expressed doubts about the feasibility of starting production in 2030 as originally planned.
In response, Minister Kim remarked, "This can be seen as a starting point, and how quickly we can complete the fabs, along with Yongin, is closely related to our country's semiconductor industry competitiveness and hegemony." He added that various issues, including power supply, water, and the arrangement of companies, are actively being addressed behind the scenes.
He also outlined plans to conclude discussions on fab placement this month and push for site agreements with relevant agencies.
Kim reaffirmed that the goal of starting production in 2030 remains unchanged, stating, "I want to clearly convey that we are operating under the plan to begin production in 2030."
He noted that companies' willingness to invest remains strong. When asked if there had been any instances of companies expressing intentions to withdraw investments during recent discussions, he replied, "Not at all," adding that companies are eager to move forward as quickly as possible.
The government is also considering starting construction on some sites before the relocation of the Gwangju military airport to shorten the project timeline. He explained, "The areas used for the airport and the ammunition depot are separate," indicating that construction could begin in certain regions even before the airport relocation.
However, companies prefer sites near the runway over those near the ammunition depot, necessitating detailed adjustments to the site selection. Minister Kim anticipated that these discussions would also be concluded this month.
Furthermore, the government reiterated its commitment to establishing an industrial ecosystem that encompasses not only production facilities but also research and development (R&D), workforce training, and companies involved in materials, parts, and equipment. Kim stated, "Once the fabs are established, numerous partner companies and personnel, along with related R&D, will inevitably move together," adding that plans are in place to develop related infrastructure concurrently.
* This article has been translated by AI.
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