Is Electricity Ready for the ‘Battle of People, Water, and Power’ in Semiconductors? [Energy-topia]

Current and Former Samsung Executives Stress the Importance of Power Supply

Hanbit Nuclear Plant and Renewables Alone Fall Short of Required Electricity

Government Finally Recognizes the Need for Additional Nuclear Power Plants

After

There is one point that Dongjin Koh, a former president of Samsung Electronics and currently a lawmaker from the People Power Party, consistently emphasizes: "Semiconductors are a battle of people, water, and electricity." In other words, for the semiconductor industry to succeed, people, water, and electricity are all essential, but among these, he considers electricity the highest priority.

He is not alone in this view. At the ‘Southwestern Region Advanced Industry Development Vision National Report Meeting’ held in Gwangju on June 30, Samsung Electronics Vice Chairman Younghyun Jeon announced a plan to build a semiconductor fab worth 400 trillion won in the Honam region and stated that a stable supply of electricity is more important than anything else. He also requested, in front of President Jaemyung Lee, the expansion of nuclear power, seamless progress on power purchase agreements (PPAs), and combined heat and power generation using liquefied natural gas (LNG).

Why is it that both current and former executives of Samsung Electronics are unanimously stressing the importance of electricity?

Before Honam, the biggest challenge currently faced by the ongoing Yongin Semiconductor Cluster is electricity. The combined power requirement for the Samsung Electronics Yongin Semiconductor National Industrial Complex and the SK hynix Yongin Semiconductor General Industrial Complex amounts to a total of 15GW.

Samsung Electronics has decided to build six LNG power plants to supply 3GW out of the required 9GW on a priority basis. These plants, set to replace coal-fired power stations scheduled for closure, have already received approval for power generation business from the Ministry of Trade, Industry and Energy's Electricity Committee. However, opposition from environmental groups and local residents has stalled the project.

To stably supply electricity to the Yongin Semiconductor Cluster, a new transmission network must also be built. Electricity produced at thermal, nuclear, solar, and wind power plants in the Donghae coastal region and Honam must be brought in. This is reflected in the 11th Power Transmission and Transformation Facility Plan announced by Korea Electric Power Corporation last year. However, as this plan became known, residents in Honam, South Chungcheong, and other areas along the transmission routes have formed committees to oppose it.

The southwestern semiconductor cluster being developed by Samsung Electronics and SK hynix is expected to require 6.3GW of power. The government has cited abundant renewable energy in the Honam region as one of the reasons for choosing this location for semiconductor production. But is this really the case?

As of 2025, the installed capacity of renewable energy in South Jeolla Province is 7.5GW, the highest in the country. However, this figure only represents the maximum possible capacity. Due to intermittency, the actual amount of electricity that renewable energy can produce is much lower. The efficiency for solar power is less than 20%, and for wind power, less than 30%. Therefore, the actual available capacity for electricity generation in South Jeolla Province may not even reach 2GW.

Moreover, even this amount cannot be generated at night or when the wind isn't blowing. To address this, large-scale investment in energy storage systems (ESS) must be pursued simultaneously.

If the semiconductor cluster is built in Honam as planned, the responsibility for supplying actual electricity will likely fall to the Hanbit Nuclear Power Plant located in Yeonggwang, South Jeolla. Hanbit’s total installed capacity is 5.9GW, with an operational rate of 90-95%.

Until now, surplus electricity produced by Hanbit Nuclear Power Plant and not used in Honam has been sent to the Seoul metropolitan area; however, this may no longer be possible. This is because the electricity produced by Hanbit will barely be sufficient even for the Honam semiconductor cluster alone.

This situation is likely to persist for the time being, as the expansion of renewable energy in Honam may not proceed as planned. South Jeolla has set a target to increase renewable energy capacity to 37.8GW by 2035, of which 21GW is to come from offshore wind. However, offshore wind projects are currently facing difficulties in various locations.

This explains why Vice Chairman Younghyun Jeon of Samsung Electronics has strongly advocated for the construction of additional nuclear power plants. The government has now also acknowledged the need for more nuclear power. Seonghwan Kim, Minister of Climate, Energy and Environment, said in a radio interview, “Semiconductors require a stable 24-hour supply of electricity, but it is difficult to meet this demand with the increase in renewables alone,” adding, “We must quickly consider whether to build additional nuclear power plants.” Although overdue, this marks the first time the reality is being properly recognized.

As in the Seoul metropolitan area, the transmission network could also become a stumbling block in Honam. Immediately after the Blue House announced its three mega-projects, Minister Kim visited the construction site of the Sinjangseong Substation, scheduled for completion in 2027. This substation is relatively close to the Gwangju military airport, a leading candidate for the southwestern semiconductor cluster. It is planned that electricity produced by both the renewable energy facilities in Honam and the Hanbit Nuclear Power Plant in Yeonggwang, South Jeolla, will be gathered here.

For the Sinjangseong Substation to function properly, new transmission lines connecting to the substation must be constructed. Korea Electric Power Corporation is currently working on the 345kV Sinjangseong-Sinjeongeup transmission line and the Sinhanae-Sinjangseong transmission line projects. In addition, a transmission line connecting the Hanbit Nuclear Power Plant to the Sinjangseong Substation is being built.

All of these projects are facing strong opposition not only from nearby residents, but also from local governments and environmental groups. Whether these groups will willingly agree to the larger goal of balanced regional development through the creation of the Honam semiconductor cluster remains uncertain.

At the site, Korea Electric Power Corporation suggested that in order to accelerate the project schedule, exemptions from preliminary feasibility studies and shorter site selection and licensing procedures are necessary. In response, Minister Kim stated, “All procedures must be completed within one year.” However, Minister Kim has also failed to resolve the construction of the Dongseoul Converter Station, which has been stalled for years due to local opposition.

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