Samsung Elec, SK hynix eye expansion amid govt’s regional development push
2026.06.10 10:55
The moves come as the Korean government intensifies its regional development agenda.
According to sources from the semiconductor industry on Tuesday, the two companies have begun reviewing fab investment opportunities outside the Seoul metropolitan area.
After completion of the massive semiconductor clusters currently under development in Yongin, Gyeonggi Province, securing large-scale sites near Seoul is expected to become increasingly difficult.
In particular, as Samsung Electronics and SK hynix accelerate fab construction amid the recent memory semiconductor boom, observers note that there is a growing need to secure future sites before the Yongin cluster reaches capacity.
SK hynix is currently building its Y1 fab in the semiconductor cluster in Wonsam-myeon, Cheoin District, Yongin, and plans to begin operations early next year.
Under the original plan, fabs were to be built on the remaining land through 2050.
However, with the recent surge in memory chip demand, some forecasts suggest investments in all four fabs could be completed as early as the 2030s.
Given that the Yongin semiconductor cluster was approved in 2019 and actual construction only began last year, the company must now begin searching for future sites.
The situation is similar for the National Semiconductor Cluster being developed by Samsung Electronics in the Idong-eup area of Cheoin District, Yongin.
Once construction is completed on the P4 and P5 fabs currently underway in Pyeongtaek, Gyeonggi Province, the first phase of the Yongin fab is expected to break ground in 2028.
A total of six fabs are planned for the National Semiconductor Cluster, and with construction timelines accelerating, discussions have emerged about identifying the next candidate site.
“The most time-consuming part of semiconductor fab construction is securing land,” an industry official said. “As the memory semiconductor supercycle accelerates fab construction schedules, companies have already begun evaluating future sites.”
Industry analysts also suggest that if Samsung Electronics and SK hynix build their first fabs outside the Seoul metropolitan area, locating them in the same region would be more effective.
One of the key competitive advantages of Korea’s semiconductor industry is that fabs are concentrated in Gyeonggi Province, with materials, parts, and equipment suppliers clustered around them.
To preserve this advantage, industry experts say placing the two companies’ fabs near one another rather than far apart would maximize the purpose of a semiconductor cluster.
This would also eliminate the need to build duplicate infrastructure, such as electricity, water supply, and logistics systems.
The Honam region, in the meantime, has emerged as a leading candidate, as political figures have made a series of statements regarding balanced regional development.
Since the discussions have largely originated within political circles, specific details—including which region might be selected—have yet to emerge.
There is also disagreement over whether a semiconductor manufacturing fab would be built or whether only packaging facilities, which are part of the back-end process, would be established.
While local governments hope to attract full-scale fabs, companies are reportedly considering packaging operations, which involve lower costs and fewer burdens.
Meanwhile, major conglomerates continue to unveil investment plans for regional areas.
SK Group plans to invest a total of 7 trillion won ($4.58 billion), in partnership with Amazon Web Services Inc. (AWS), to build an artificial intelligence (AI) data center in Ulsan with completion targeted for 2029.
The conglomerate has also decided to invest an additional 19 trillion won in Cheongju, North Chungcheong Province, where its high-bandwidth memory (HBM) facilities are located, to establish an advanced packaging plant.
In February, Hyundai Motor Group announced a mega-project worth 9 trillion won in the Saemangeum area of Gunsan, North Jeolla Province, focused on AI data centers and robotics.
During a meeting with Jensen Huang, chief executive officer (CEO) of U.S. chip giant Nvidia Corp., on Monday, Chairman Euisun Chung reportedly proposed joint investment in projects including the Saemangeum data center as part of efforts to attract strategic partners.
In Ulsan, the group is investing 2 trillion won to operate a new electric vehicle plant within its Ulsan complex.
It will be Hyundai Motor’s first new vehicle assembly plant in Korea in 29 years since the Asan plant opened in 1996.
The government also plans to actively pursue customized support measures in the areas of finance, taxation, talent development, and other areas to encourage corporate investment outside the capital region.
A representative initiative is the “Five Mega-Regions and Three Special Self-Governing Provinces” industrial policy, a national balanced development strategy that would reorganize the country into five major economic regions—the Seoul metropolitan area, Southeast region, Daegu-Gyeongbuk region, Central region, and Honam region—along with the three special self-governing provinces of Gangwon, North Jeolla, and Jeju.
The Blue House declined to comment on speculation regarding Samsung Electronics’ and SK hynix’s potential investments in the Honam region.
“Investment plans are a matter of corporate decision-making and are not something the government can confirm,” said a Blue House official.
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