According to industry sources on the 11th, the “Special Act on Strengthening the Competitiveness of and Support for the Semiconductor Industry” and its enforcement decree took effect that day. Under the Special Act, the national and local governments may cover 50–100% of the total project costs for the construction and operation of industrial infrastructure—such as power, water, and roads—required for semiconductor clusters. Full funding is also possible for facilities that contribute to redundancy, supply chain stability, or industrial safety.
The Yongin Cluster, where both companies are currently making large-scale investments, is expected to benefit immediately from this support. The target completion date for the general industrial complex in which SK hynix is participating has been moved up by 12 years, from 2045 to 2033, while that for the national industrial complex in which SamsungElectronics is participating has been moved up by 8 years, from 2047 to 2039. These are targets recently set by the government and can only be achieved if the infrastructure support and special provisions for preliminary feasibility studies under the Special Act are implemented as planned.
Kim Yong-seok, a distinguished professor at Gachon University’s College of Semiconductors, stated, “The infrastructure support outlined in the special act will be of great help in establishing the Yongin Cluster, which is currently under development,” adding, “Since fab construction takes a considerable amount of time, it is necessary to focus support on rapidly completing the Yongin Cluster first.”
For semiconductor companies, the actual start of operations is just as important as the groundbreaking of a fab. Semiconductor factories require an uninterrupted supply of large-scale electricity and ultra-pure water; even if the production facilities are completed, they cannot begin operations unless the power transmission grid and water supply facilities are ready. From the perspective of SamsungElectronics and SK hynix, the core benefit of the Special Act lies not only in reducing infrastructure costs but also in minimizing the “time lag” between fab construction and infrastructure development.
Companies believe the success of the special law hinges on whether it leads to actual power and water supply and the securing of talent. Kwak No-jeong, President and CEO of SK hynix, remarked during an on-site meeting held that day at the Yongin Semiconductor Cluster by the Democratic Party of Korea’s Special Committee for Supporting the Three Major Mega-Projects: “We still face major challenges, such as expanding beyond the Yongin Semiconductor Cluster to our existing campuses and, simultaneously, extending our reach to the Honam region,” he emphasized, adding, “Such a scale of business expansion is beyond the capabilities of a single company, so full-scale support for water, power, and talent is essential.”
The Korea Semiconductor Industry Association also assessed that the special act will serve as a foundation to support large-scale corporate investment and innovation in the industrial ecosystem, stating, “The construction of core infrastructure, such as power and water supply, and follow-up support policies must be implemented swiftly and consistently.”
Investment in the Honam region will also serve as a litmus test for the special act’s effectiveness. SamsungElectronics plans to invest 425 trillion won, and SK hynix plans to invest 470 trillion won to build two memory fabs and artificial intelligence (AI) infrastructure, respectively. The two companies’ combined investment plans for the Honam region total approximately 895 trillion won. The government aims to complete the selection of project operators and the designation of clusters this year, begin construction of the fabs in 2028, complete the first phase in 2029, and enter the first stage of mass production in 2030.
However, the investment in the Honam region is a mid- to long-term plan involving many variables, such as securing land, relocating a military airport, and companies’ final investment decisions. Professor Kim emphasized, “The most urgent task right now is to accelerate the Yongin cluster, where investment is already underway,” adding, “Rather than rushing ahead with plans, we must provide practical support starting with the power and water infrastructure that companies need immediately.”
