Samsung Electronics is preparing its largest regional investment plan to date, aiming to leverage the semiconductor boom for national balanced development and the cultivation of future industries. If SK Group also engages in large-scale investments, projections suggest that total investments could reach 2,000 trillion won over the next decade.
According to Yonhap News Agency, both the government and industry analysts view Samsung's investment as a strategy to maintain leadership in the global semiconductor competition while expanding the semiconductor value chain and advancing manufacturing capabilities.
The semiconductor cluster being developed in the Honam region is expected to match the scale of the semiconductor cluster in Yongin, which includes up to 10 semiconductor fabrication plants (fabs) featuring both front-end and back-end processes. This cluster is anticipated to foster a large industrial ecosystem with concentrated design, equipment, and materials companies, along with an influx of research and development (R&D) personnel and specialized talent.
Industry experts believe that if the semiconductor boom continues until 2030, this investment foundation will be crucial for maintaining South Korea's global semiconductor leadership.
In addition to semiconductors, Samsung plans to expand investments in advanced materials and components. In the Chungcheong region, Samsung Display, Samsung SDI, and Samsung Electro-Mechanics are producing semiconductor substrates, displays, and batteries, with increased production capacity expected to strengthen the supply chain for advanced industries such as physical AI and next-generation mobility. The expansion of multi-layer ceramic capacitor (MLCC) production at Samsung Electro-Mechanics in Busan and the enhancement of production facilities at Samsung Biologics are also expected to boost competitiveness in the electronics and biopharmaceutical sectors, respectively.
Samsung Group is projected to invest approximately 1,000 trillion won in the semiconductor and materials and components sectors over the next decade. If SK Group also plans a similar scale of investment, the combined total from both conglomerates could reach 2,000 trillion won. Kim Yong-beom, head of the Presidential Policy Office, recently remarked that the figures associated with this investment are likely to be unprecedented.
The government aims to decentralize advanced industry hubs to alleviate concentration in the capital region and promote balanced regional development. Plans are underway to establish Honam as a semiconductor production hub, Chungcheong as a center for semiconductor packaging and advanced materials and components, Yeongnam as a base for AI-driven manufacturing, and Incheon as a core hub for the biopharmaceutical industry.
Additionally, there are expectations that if SK Group considers developing a semiconductor cluster in Honam and an AI data center in Yeongnam, along with Hyundai Motor Group and LG Group expanding investments in physical AI and AI data centers, a nationwide advanced industry ecosystem could be established.
* This article has been translated by AI.
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