Samsung to Invest 425 Trillion Won in Honam, Building Two New Semiconductor Fabs in Gwangju

Samsung SDS to Build AI Data Center in Haenam Solaseado

Samsung C&T to Expand Investment in Carbon-Free Future Energy

Samsung is expanding the map of South Korea's semiconductor industry—which has until now been concentrated in the greater Seoul metropolitan area—into the Honam region. In order to proactively respond to the surging global demand for artificial intelligence (AI) and semiconductors, the company has selected the Honam region, known for its strong potential, as its next-generation strategic base, and plans to invest a total of 425 trillion won.

On June 30, at the Gwangju Kim Dae-jung Convention Center, Samsung attended the “Southwestern Advanced Industry Development Vision National Report” and unveiled a comprehensive mid- to long-term investment plan for the Honam region. This plan encompasses the establishment of a global cutting-edge semiconductor cluster, an AI data center, and a carbon-free future energy ecosystem.

Vice Chairman Young-Hyun Jeon of Samsung Electronics is announcing the investment plan at the Southwest Advanced Industry Development Vision National Report Meeting held at the Kim Dae-jung Convention Center in Gwangju on the 30th, presided over by President Jae-myung Lee. Photo by Yonhap News Agency

Younghyun Jeon, Vice Chairman, CEO of Samsung Electronics, and Head of the DS (Device Solutions) Division, cited the explosive growth in global semiconductor demand and the resulting need to secure next-generation production bases as quickly as possible as the main drivers for this investment.

Vice Chairman Jeon explained, “The Pyeongtaek semiconductor plant is in its final phase. The investment schedule for the next step, the Yongin National Industrial Complex, is also accelerating.” He added, “Accordingly, the timeline to prepare a new complex after Yongin is being moved up.” As the operation and design schedules for the metropolitan area's semiconductor line—spanning Giheung, Hwaseong, Pyeongtaek, and Yongin—are being advanced ahead of schedule, it has become necessary to establish a new cluster to succeed Yongin even sooner.

The next territory for semiconductors chosen by Samsung is Gwangju Metropolitan City. Samsung Electronics plans to invest about 400 trillion won in Gwangju to build two new main semiconductor fabs (factories), positioning them as next-generation key hubs to lead the global semiconductor market.

However, given the characteristics of semiconductor plants, a stable supply of electricity and water is crucial, and the company also called for government support to expand related infrastructure.

Vice Chairman Jeon strongly emphasized, “As announced yesterday by (Sung-hwan Kim) the Minister for Climate, Energy, and Environment, stable power supply is of the utmost importance. We must supplement the intermittency of renewable energy sources.” He continued, “I urge the government to actively pursue nuclear power expansion and power purchase agreements (PPAs), and to ensure that liquefied natural gas (LNG) combined heat and power generation can also be carried out as planned.”

This investment plan also includes Samsung SDS investing 17 trillion won to build a national AI data center in Haenam Solaseado. The core of the plan is to establish a 210 MW-class AI data center, which will serve as a powerful engine for AI-driven economic growth. Construction will begin in the second half of this year, with the goal of beginning operations in 2028.

In addition, in Gwangju and Gochang, Samsung Electronics will invest 4 trillion won in a smart home appliance innovation hub factory and a global logistics automation pilot center. Samsung C&T will invest 4 trillion won in the Honam region to build solar power generation facilities, hydrogen production facilities based on nuclear power, and a demonstration complex for green hydrogen research and development (R&D).

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