Samsung Electronics and SK Hynix are set to make the largest investment in advanced semiconductor and artificial intelligence (AI) infrastructure in the Southwest region centered around Gwangju. This move aims to expand the semiconductor cluster, previously concentrated in Yongin and other areas in southern Gyeonggi Province, into the Southwest region, completing a 'U-shaped semiconductor mega belt.'
On June 30, Jeon Young-hyun, Vice Chairman of Samsung Electronics, and Kwon No-jung, CEO of SK Hynix, announced a detailed regional investment roadmap at the 'National Report Meeting on the Development Vision for Advanced Industries in the Southwest Region' held at the Kim Dae-jung Convention Center in Gwangju. This announcement follows the unveiling of three major mega projects the previous day, where companies revealed specific implementation plans.
The core of the roadmap is Samsung's new investment in next-generation semiconductor fabs. Jeon stated, "After reviewing various regions, we have decided to plan Gwangju as a new site, considering essential infrastructure such as power and water supply, workforce availability, and living conditions. We plan to construct two main fabs in Gwangju to establish it as a global semiconductor hub."
Samsung's total investment will reach 425 trillion won, with 400 trillion won allocated specifically for the two main fabs. Additionally, approximately 17 trillion won will be invested in building a national AI data center in Haenam Solar City, with plans to commence construction in the second half of 2026 and aim for initial operations by 2028. A global state-of-the-art logistics center will also be developed in Gochang, North Jeolla Province.
SK Hynix is also establishing a new production base in the Southwest region to meet the explosive demand for memory in the AI era. Kwon explained, "The Yongin semiconductor cluster alone cannot meet future global market demand," highlighting the need for expansion into the Southwest cluster.
Kwon emphasized, "In the AI era, memory is not just a component but a key infrastructure that determines AI performance. We will build a production base in the Southwest region, which can provide stable power and water supply on a large scale."
SK Group plans to expand AI data center infrastructure nationwide, starting with an initial capacity of 5 gigawatts (GW) and ultimately aiming for a total of 15 GW. In particular, a large data center with a capacity of 1 GW will be established in the Southwest region to create an advanced AI industrial ecosystem that integrates semiconductor production and AI computing.
On the same day, SK Hynix signed a memorandum of understanding (MOU) with the government and relevant agencies to promote the development of advanced industries in the Southwest region.
Industry experts stress that the success of these large-scale investments hinges on stable power and water supply, urging the government to provide robust infrastructure support. Semiconductor production lines are particularly vulnerable to disruptions in power supply, which can lead to significant losses.
Jeon publicly called for the expansion of nuclear power to compensate for the intermittency of renewable energy, the active pursuit of long-term power purchase agreements (PPAs), and the construction of LNG combined heat and power plants. He stated, "The scale of our investment plans cannot be achieved by individual companies alone," urging for government-wide cooperation in securing sites and power networks.
* This article has been translated by AI.
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