Samsung and SK Consider Semiconductor Investments in Honam and Chungcheong... Will President Lee's Growth Strategy Gain Momentum?

Decentralizing Semiconductor Infrastructure Beyond the Seoul Metropolitan Area
New Samsung Plant in Gwangju, SK hynix Expansion in Chungcheong
Balanced Regional Development Centered on the Semiconductor Industry

Samsung Electronics and SK hynix are considering expanding their semiconductor facility investments to the Honam and Chungcheong regions. This initiative appears to be aimed at spreading the semiconductor production infrastructure, which is currently concentrated in the Seoul metropolitan area, to other regions in order to promote balanced regional development and secure future growth engines simultaneously.

According to political and government sources on June 10, Samsung Electronics and SK hynix are reportedly exploring various plans to expand their semiconductor production bases, which are currently focused in the Seoul metropolitan area, to other regions such as Honam and Chungcheong.

Since last year, demands from local politicians and civic groups have been steadily raised, and now seem to be entering a full-fledged discussion stage. This move is also in line with President Lee Jaemyung's recent announcement during his first anniversary press conference, where he stated that he would soon unveil a large-scale investment project to drive a major shift in the country's growth strategy. It is interpreted as a plan to simultaneously promote balanced regional development and strengthen industrial competitiveness, particularly in the semiconductor sector, which is a key national industry.

Samsung Electronics, SK hynix. Yonhap News.

If Samsung Electronics and SK hynix proceed with new investments in regional areas, the Honam region is being mentioned as a strong candidate. Specifically, there are behind-the-scenes discussions about Samsung Electronics establishing a new semiconductor packaging (backend process) plant in Gwangju. With advanced memory products such as high-bandwidth memory (HBM) making packaging processes a core element of semiconductor competitiveness, some analysts predict that Samsung Electronics may expand its existing packaging production system, which is currently centered in the Chungcheong region.

Honam is considered to have strengths over the Seoul metropolitan area in terms of utilizing renewable energy such as solar and offshore wind power, as well as securing industrial water. Recently, as Hyundai Motor Group and NVIDIA are working together to establish a physical AI (artificial intelligence) value chain in Saemangeum, additional semiconductor production facilities could further create industrial synergy. Accordingly, there are also expectations that SK hynix may locate some of its backend facilities, including packaging, in the Honam region. Since SK hynix announced this year that it would invest 19 trillion won to build the advanced packaging fab P&T7 in Cheongju, North Chungcheong Province, there is also speculation about additional investments centered in the Chungcheong area.

Both the government and business circles anticipate that a concrete plan may be unveiled later this month when President Lee Jaemyung holds a meeting with the heads of major business groups at the Blue House. At his first anniversary press conference on June 8, President Lee said, "We will advance toward becoming a super-gap industrial powerhouse where all citizens and all regions enjoy equal opportunities and benefits of growth," and added, "I will soon present to the public a large-scale investment project that will bring about a major transformation in our growth strategy."

However, no specific plan has been finalized yet. Samsung Electronics and SK hynix stated that they "cannot confirm" whether discussions with the government are taking place.

This content was produced with the assistance of AI translation services.