South Korea said on June 29 that Samsung Electronics and SK Hynix will invest a combined 800 trillion won in four new semiconductor fabrication plants as part of a broader semiconductor and artificial-intelligence program, according to Reuters.
The plan calls for two new fabrication sites for each company in the country’s southwest region, while a separate 81 trillion won is expected to be invested in a chip packaging cluster in the Chungcheong area near Seoul. Reuters reported that the city of Gwangju and South Jeolla province are also expected to provide 5 trillion won to 20 trillion won of local co-investment.
The new sites would add to South Korea’s existing semiconductor buildout, including the Gyeonggi-area cluster previously outlined by the Ministry of Trade, Industry and Energy with 19 production fabs and two research fabs already in place and 16 additional fabs planned through 2047.
Samsung Chairman Jay Y. Lee was reported to have identified Gwangju as Samsung’s preferred location, while SK Group Chairman Chey Tae-won said more time was needed to finalize a site and secure land, power, water and labor. Reuters also reported that analysts and academics cited execution risks tied to electricity, water, logistics, supplier networks, skilled labor availability and long-term demand uncertainty.