Samsung and SK are reshaping the industrial landscape for the AI era, focusing on establishing a semiconductor hub in the Honam region. They plan to create a semiconductor backend processing and packaging center in Honam while expanding investments in displays, batteries, components, and biotechnology in other regions, including Chungcheong, Yeongnam, and Incheon. This strategy aims to decentralize the concentration of advanced industries in the capital area, promoting balanced national development and enhancing supply chain stability.
According to industry sources on June 28, Samsung Electronics and SK Hynix are reviewing semiconductor investment plans in regional areas, including Honam. The government is expected to present a vision for a national spatial transformation centered on semiconductors, AI, and physical AI at a public briefing on the "Three Mega Projects for Korea's Great Leap" at the Blue House on June 29.
The core of this initiative is the establishment of a semiconductor hub in Honam. As demand for AI semiconductors grows, the importance of backend processes such as packaging and testing has increased. Backend processing is considered a practical starting point for regional distribution due to its relatively flexible location requirements compared to frontend fabs. Honam is recognized for its renewable energy resources, water supply, and large land availability, making it an attractive alternative as the semiconductor cluster in the capital area faces challenges in securing power and water.
Samsung is also exploring ways to connect its major facilities nationwide with its investment in Honam. The plan involves positioning Honam as the center for semiconductor backend processing, while Chungcheong focuses on displays, batteries, and semiconductor components, Yeongnam on mobile and electronic components manufacturing, and Incheon on biotechnology. The goal is to create a nationwide advanced industrial network, starting from Honam.
In Chungcheong, facilities such as the Samsung Display Asan Campus, Samsung SDI Cheonan Plant, and Samsung Electro-Mechanics Sejong Plant are being considered as bases for developing next-generation displays, batteries, and semiconductor substrates—key components for the AI era. In Yeongnam, the Samsung Electronics Gumi Plant, Samsung Electro-Mechanics Busan Plant, and Samsung SDI Ulsan Plant are seen as crucial for enhancing manufacturing competitiveness. In Incheon, Songdo is poised for significant expansion in the biotechnology sector, led by Samsung Biologics.
SK Hynix is reportedly considering adding backend processing and production bases in Honam or Chungcheong while maintaining its existing semiconductor cluster in Yongin and production base in Cheongju. With the surge in demand for high-bandwidth memory (HBM) driven by AI, there is a pressing need to expand both production capacity and packaging capabilities. Observers suggest that discussions around Honam semiconductor investments could lead to a broader diversification of production bases across the domestic memory industry, rather than being solely Samsung's initiative.
Experts analyze that this plan is not merely about regional distribution but represents a significant industrial realignment for the AI era. Semiconductors form the foundation for AI computations, while batteries and energy storage systems support power infrastructure. Displays, mobile, and automotive components are intertwined with the expansion of physical AI and robotics, as well as autonomous driving. Biotechnology represents another pillar of high-value advanced manufacturing. By leveraging regional strengths, this approach could alleviate the concentration of advanced industries in the capital area while reducing supply chain risks.
An industry insider stated, "The establishment of a semiconductor hub in Honam is not just a regional investment; it marks the beginning of a new industrial map for the AI era. If aligned with investments in other regions, it could serve as a catalyst for expanding the capital-centered advanced industrial structure to a nationwide scale."
* This article has been translated by AI.
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