As discussions about attracting semiconductor factories to the Honam region gain traction, experts emphasize the need for multifaceted support beyond site selection.
On June 17, industry sources noted that the potential investments by Samsung Electronics and SK Hynix in Honam have brought attention to the necessity of developing local semiconductor infrastructure. Analysts suggest that the focus may initially be on backend processes and packaging rather than front-end fabrication. Packaging has emerged as a critical process that influences the performance of AI semiconductors, and it offers more flexibility in site selection compared to front-end fabs.
A key factor is power supply. Semiconductor packaging plants cannot operate without a stable electricity supply. With the growing demand for AI semiconductors and the increasing number of data centers, the burden on the power grid has intensified. Therefore, attracting local factories must coincide with the expansion of regional power networks. Connections to renewable energy and long-term power supply contracts will also be significant factors in corporate investment decisions.
Water supply and logistics are equally important. Semiconductor processes require high-quality water and effective wastewater treatment systems. Accessibility to ports, airports, and highways for the movement of finished products, materials, and equipment is crucial. With Gwangju, Jeonnam, Saemangeum, and Muan being considered as potential sites, each region must present a competitive operational package that integrates power, water, and logistics rather than merely competing for land.
Tax incentives are also necessary. To encourage local relocations or new investments, measures such as investment tax credits, local tax reductions, support for site development costs, and expedited permitting must be provided. For companies, the long-term operational stability is more critical than the initial construction costs. This highlights the need for a regulatory framework that reduces long-term operational expenses rather than focusing solely on one-time attraction efforts.
Concerns about workforce supply are mitigated by the high salaries offered by both companies. However, there is a call for a robust system to cultivate practical semiconductor talent that can be deployed locally.
Samsung Electronics is establishing semiconductor contract programs with local science and technology institutes, such as GIST, to build a talent development framework outside the capital region. The Gwangju Human Resources Development Center is also offering training programs for semiconductor-related fields, including NPU (Neural Processing Unit) AI design experts. Moving forward, there are suggestions for local universities and specialized training institutions to expand their programs to develop personnel in packaging, testing, equipment, and quality control.
An industry insider stated, "While packaging plants may have more potential for regional distribution compared to front-end fabs, it is essential to prepare for power, logistics, and workforce development together. Local governments need to present operational packages that go beyond merely providing land to encourage corporate movement."
* This article has been translated by AI.
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