Plans are being discussed to expand Samsung Electronics and SK hynix's semiconductor facility investments to the Honam and Chungcheong regions.
According to political circles and government authorities on the 9th, various options are being reviewed to broaden semiconductor production bases, now concentrated in the Seoul metropolitan area, to non-capital regions such as Honam and Chungcheong. Tied to President Lee Jae-myung's recent hint during a news conference marking his first year in office that he would unveil a large-scale investment project, there is speculation that ways to link the semiconductor industry with balanced regional development could be discussed.
At the news conference the previous day, the president said, "We will move toward becoming an industrial powerhouse with an overwhelming lead, where all people and all parts of the country share equally in opportunities and benefits of growth," adding, "Soon we will present to the public a large-scale investment project that will bring about a major shift in our growth strategy."
The need for regional investment in the semiconductor industry has been consistently raised by local political circles and civil society. The Special Act on Strengthening Competitiveness and Support for the Semiconductor Industry, set to take effect in Aug., also includes support measures for semiconductor clusters and special licensing provisions that consider balanced regional development.
For Samsung Electronics, options being discussed include building semiconductor packaging plants in Gwangju, Jangseong in South Jeolla Province, and Onyang in South Chungcheong Province. The Honam region is seen as relatively advantageous compared with the metropolitan area in terms of securing renewable energy such as solar and offshore wind and water supply conditions, a factor under review.
The recent decision by Hyundai Motor Group to build a physical artificial intelligence (AI) value chain in Saemangeum with Nvidia is also cited alongside the possibility of investment in the Honam region. If semiconductor facilities are established, they could generate synergy with related industries. In the industry, there is also speculation that SK hynix could place some back-end processes, including packaging, in Honam.
Inside and outside the government and the business community, there is also an outlook that if a meeting between the president and the heads of major groups is held at the Blue House late this month, related plans could be unveiled.
Still, corporations are cautious. Samsung Electronics and SK hynix say they are "not aware" of any related discussions with the government.