Samsung will invest a total of 425 trillion won in the Honam region to push a semiconductor manufacturing plant in Gwangju and an artificial intelligence (AI) data center in Haenam's Solaseado. Jun Young-hyun, CEO (vice chairman) of Samsung Electronics and head of the DS (semiconductor) institutional sector, presented Gwangju as a candidate for the next semiconductor cluster, while stressing that support for infrastructure such as power, water, workforce, and residential conditions is a precondition for executing the investment.
On the 30th, Vice Chairman Jun attended the "National briefing on the development vision for high-tech industries in the southwest region" at the Kimdaejung Convention Center in Gwangju and said, "Samsung plans to invest about 425 trillion won in Honam, focusing on advanced industries such as global advanced semiconductors, AI data centers, and future energy." He added, "Through new semiconductor investments, we plan to make Gwangju a global semiconductor base."
Samsung Electronics announced detailed investment plans at the group level through a press release after Vice Chairman Jun's briefing that day. The gist is to establish bases for semiconductors, AI data centers, future energy, and HVAC and logistics hubs.
Samsung unveiled a plan at the "National briefing on the three mega projects for Korea's great leap" held at the Blue House state guesthouse the previous day to inject a total of 425 trillion won into the Honam region, including 400 trillion won for a semiconductor fab investment in Gwangju. The announcement that day was arranged to flesh out plans to foster a high-tech industry hub in the southwest region.
◇ Build two semiconductor fabs in Gwangju… "Respond to AI demand"
The core of the Gwangju investment is two new semiconductor fabs. Samsung explained that, to respond to what is expected to be a surge in global semiconductor demand, the investment schedule for the Yongin national industrial complex is also accelerating, following Giheung, Hwaseong, and Pyeongtaek. It said the time frame has moved up for preparing a new semiconductor cluster after Yongin.
Vice Chairman Jun said, "We expect future semiconductor demand to increase enormously," and added, "After reviewing several regions, we are planning Gwangju as a candidate site where support is expected for essential semiconductor infrastructure such as power and water, securing talent, and residential conditions." He continued, "If all these conditions are in place, we are planning to invest about 400 trillion won starting with two fabs in Gwangju," and said, "We are confident Gwangju will become the next semiconductor cluster leading Korea's semiconductor industry along with the Seoul metropolitan area."
At Haenam's Solaseado, Samsung SDS will build a 210 MW-class AI data center. Samsung aims to break ground in the second half of 2026 and begin initial operations in 2028. The facility will serve as a base supporting the government's AI transformation (AX) and will be used as AI infrastructure in finance, defense, and public services.
Samsung expects the Solaseado AI data center to boost the research and development (R&D) capabilities of universities, research institutes, and corporations, and to play a role in supporting industrial physical AI such as robot AI model training and inference. It will also promote the creation of an associated industrial ecosystem that brings in companies related to HVAC, security, and networks.
◇ "Stable supply of power and water is needed… We ask for swift administrative support"
Samsung C&T will participate in the future energy field. Samsung C&T plans to invest in ▲ carbon-free power generation such as nuclear and renewable energy ▲ nuclear-based hydrogen production, including a water electrolysis facility in Yeonggwang ▲ demonstration of green hydrogen technology based on solid oxide electrolysis cells (SOEC).
Samsung Electronics will also establish additional bases in Gwangju and Gochang. At the Gwangju site, it will build a Digital Twin-based innovation hub factory and facilities to produce heat pumps and HVAC units. In Gochang, North Jeolla, it will pursue construction of a cutting-edge global logistics center.
Vice Chairman Jun repeatedly noted that such large-scale investments are difficult with corporate efforts alone. He said, "These plans have limits if left to individual corporations," and added that a stable supply of power and water needed for the national industrial complex and swift administrative support are necessary.
He also made specific requests on how to supply power. Vice Chairman Jun said, "Above all, a stable supply of power is crucial," and added, "Please actively push to expand nuclear power to complement the intermittency of renewable energy and to use PPAs (power purchase agreements)." He continued, "I ask once again to ensure LNG combined heat and power generation can definitely move forward."
Securing talent and residential conditions were also cited as key conditions for executing the investment. Vice Chairman Jun said securing top talent to maintain a super-gap in semiconductors and improving housing, education, and living infrastructure are needed, noting that government policy support should proceed in parallel. He said, "We will continue to move quickly as a company so that Korea can make a big leap forward, and we will do our best."