Samsung Electronics to Announce Record-Breaking 1,000 Trillion Won Investment Plan Extending Beyond Honam to Chungcheong and Yeongnam Regions

Samsung Announces Nationwide Semiconductor Facility Expansion
Affiliates to Increase Investments in Gwangju, Onyang, Gumi, and More
Government to Support with 'Mega Project' Announcement on the 29th

In response to the government's investment project in the Southwest region, Samsung Electronics is joining a large-scale public-private investment initiative. Samsung Electronics will announce a mid- to long-term investment plan aimed at establishing a nationwide semiconductor ecosystem, extending beyond the creation of a Honam Semiconductor Cluster to include the Chungcheong, Yeongnam, and Incheon regions. The total investment is expected to reach approximately 1,000 trillion won over the next 10 years.

According to industry sources and government officials on June 28, Samsung Electronics is expected to unveil an astronomical mid- to long-term investment plan encompassing its key business sites nationwide at the “Korea Grand Leap Forward: Three Mega Projects National Briefing Session” presided over by President Lee Jaemyung on June 29. To this end, Lee Jae-yong, Chairman of Samsung Electronics, met with President Lee at the Blue House on June 25 to discuss the investment plan and exchanged views for over an hour. Chairman Lee, along with Jeon Younghyun, Vice Chairman of the Device Solutions (DS) Division, and other key executives, are expected to attend the briefing session on June 29.

The government is currently promoting the “5 Guk 3 Teuk” (5 major metropolitan areas and 3 special self-governing provinces) national balanced development strategy and the establishment of a Southern Semiconductor Belt. The “Special Act on Strengthening Competitiveness and Supporting the Semiconductor Industry” (the Semiconductor Special Act), which will take effect in August, also includes measures to support regional semiconductor clusters, special regulatory exceptions, and other provisions to ensure balanced regional development.

Samsung Electronics Onyang Campus. Samsung Electronics.

This plan is expected to include the creation of a semiconductor cluster in the Honam region and the expansion of the post-processing (back-end) ecosystem in the Chungcheong region, among other comprehensive measures. The proposal involves expanding major production facilities such as those in Pyeongtaek, Hwaseong, Giheung, Onyang, and Cheonan to a national scale. In the newly established Jeonnam-Gwangju Unified Special City, a “mega cluster” will be built, combining front-end fabs (production lines) and back-end packaging plants. It is estimated that up to five fabs, each costing at least 60 trillion won to construct, could be built in this cluster.

In the Chungcheong region, there is discussion about expanding the existing core back-end facility, the Onyang Campus (located in Asan, South Chungcheong Province), and further developing an advanced materials and components ecosystem. In addition, major affiliates such as Samsung Display, Samsung SDI, and Samsung Electro-Mechanics are expected to make large-scale investments. Samsung Display plans to invest 100 trillion won over the next 10 years, centered on its Asan and Cheonan campuses, to expand the production of organic light-emitting diodes (OLEDs) and next-generation displays. Samsung SDI’s Cheonan plant is expected to expand next-generation battery production capacity, while Samsung Electro-Mechanics’ Sejong plant is anticipated to boost production of high-value substrates for AI semiconductors. The government is also expected to support these efforts by establishing an advanced materials and components industrial complex in the Chungcheong region.

In the Yeongnam region, Samsung Electronics will strengthen AI-based manufacturing competitiveness at its Gumi plant, and Samsung Electro-Mechanics’ Busan plant will expand production of multilayer ceramic capacitors (MLCCs) and semiconductor substrates. Samsung SDI’s Ulsan plant is expected to increase production facilities for energy storage systems (ESS), in response to soaring demand driven by AI infrastructure expansion. Additionally, in Incheon, Samsung Biologics is expected to make large-scale investments to foster biotechnology as a future growth engine.

Industry experts predict that if all regional investment plans are executed, the total investment could reach approximately 1,000 trillion won over the next 10 years. The government’s three mega projects are also expected to gain further momentum. To this end, Chairman Lee is expected to visit the Samsung Display Asan Campus on July 2 to directly present his vision for leading investments in the Chungcheong region, aimed at advancing the ecosystem for advanced materials and components.

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