[Edaily JAEMIN SONG Reporter Hwang Byeong Seo ] SamsungElectronics and SK hynix are establishing a new semiconductor cluster in the Honam region. With a 10-year outlook, this project—which will involve an investment of approximately 500 trillion won (estimated)—is one of the largest investments in Korean history. The move aims to address the explosive demand for memory chips driven by the spread of artificial intelligence (AI) not only in the already overcrowded Seoul metropolitan area but also in the Honam region.

Kim Yong-beom, Chief of Staff for Policy at the Blue House, spoke at the Kwanhoon Forum held at the Press Center in Jung-gu, Seoul, on the 24th regarding the recently discussed plan to establish a semiconductor cluster in the Honam region. “Demand [for memory] is exploding due to the AI revolution,” he said, adding, “The Honam cluster is not about relocating the Yongin cluster to a regional area, but rather about preparing an additional hub to meet future demand.” This marks the first time the government has officially confirmed the investment plans by SamsungElectronics and SK hynix in the Honam region.

Director Kim said, “We will build as much as we can in the Seoul metropolitan area, but we must start preparing additional sites now to prepare for the future,” adding, “It takes at least seven to eight years to build a semiconductor factory—from site selection to the construction of power and water infrastructure, and finally to production. It will be too late to discuss the next hub after the Yongin site is fully occupied.”

According to the government and industry sources, SamsungElectronics and SK hynix are coordinating detailed plans with the government regarding the creation of a semiconductor cluster in the Gwangju and South Jeolla regions ahead of a public-private joint meeting scheduled for the end of this month. The two companies are reportedly reviewing a large-scale investment plan that encompasses △front-end processes such as memory production lines, △back-end processes such as advanced packaging, and △AI data centers. Initially, the plan focused on back-end processes, but the scope has expanded significantly to include front-end processes as well. Industry sources estimate the investment scale to be around 500 trillion won.

Following his meeting with SK Group Chairman Choi Tae-won on the 19th, President Lee Jae-myung is scheduled to meet with SamsungElectronics Chairman Lee Jae-yong on the 25th. It is reported that Chairman Choi has decided to visit Gwangju in person on the 30th to announce the related investment plans. In the Gwangju and South Jeolla regions, various candidate sites are being considered, including the Advanced Technology District 3, Haenam Solasido, and the Gwangju Airport site. Ahn Ki-hyun, Executive Director of the Korea Semiconductor Industry Association, stated, “Semiconductor factories must begin preparing their next production hubs years in advance,” adding, “It is now time to discuss additional hubs to respond to the growing demand for AI.”

However, given the sheer scale of the project, numerous obstacles remain. These include the need for a large-scale ultra-high-voltage power grid, industrial water, key semiconductor personnel, and logistical accessibility. Kim Hyung-jun, Director of the Next-Generation Intelligent Semiconductor Project Group (Professor Emeritus at Seoul National University), said, “It is impossible to operate a semiconductor factory relying solely on renewable energy sources such as solar and wind power (which are major advantages of the Honam region),” adding, “A stable power source, such as nuclear power, is absolutely necessary.”

Meanwhile, SK hynix announced in a regulatory filing that day its plan to issue depositary receipts (DRs) worth up to 45.45 trillion won to list on the Nasdaq Stock Market in the U.S. The Nasdaq listing date is set for the 10th of next month. SK hynix plans to use the funds raised to invest in Phase 1 of the Yongin Semiconductor Cluster fab, the Cheongju P&T7 advanced packaging fab, and the purchase of extreme ultraviolet (EUV) lithography equipment.