Amid rumors of Samsung and SK investing in semiconductors in Honam, interest also grows in the region's 'largest renewable energy source'

Courtesy of Newsis. [Financial News] As it has been reported that Samsung Electronics and SK Hynix are considering establishing a large-scale semiconductor cluster in the Honam region, the region's domestic renewable energy infrastructure, the largest of its kind, is emerging as a key competitive advantage for location.
According to the business community on the 26th, the two companies are reviewing plans to expand investment in semiconductor clusters in the Honam and Chungcheong regions, and if the plan materializes, the total investment by both companies is expected to reach around 500 trillion won. Furthermore, with the possibility being raised that the project may include production facilities for front-end processes—etching circuits onto wafers—beyond back-end packaging, it is observed that this will serve as an opportunity to diversify the domestic semiconductor production map, which has been concentrated in the Seoul metropolitan area, toward the southern region.
The specific investment roadmap is expected to take shape around the time of the joint public-private meeting on the 'Great Transformation of National Spatial Planning' to be held at the Blue House at the end of this month. The reason Honam is being mentioned as a strong candidate lies in its abundant 'renewable energy resources.
' As the Honam region is considered the nation's largest renewable energy production hub, it is evaluated as having favorable conditions for corporate location selection in terms of responding to RE100. RE100 is a global campaign aiming for companies to source 100% of their electricity from renewable energy.
Although it is not legally binding, it has emerged as an undeniable variable as global big tech companies, such as Apple and Microsoft, which are major clients of domestic semiconductor firms, are demanding it across their entire supply chains. In fact, candidate sites being discussed, such as Solasido in Haenam, South Jeolla Province, Advanced Technology District 3 in Gwangju, and the Jangseong area, are evaluated as being well-equipped with solar and offshore wind infrastructure as well as industrial water supply networks.
8 gigawatts (GW) of electricity using renewable energy sources such as solar power. 4 GW by 2030, the cited figures for area and power generation capacity vary depending on the calculation criteria.
The renewable energy potential of the Honam region is already being realized through projects by various companies. Notably, SK Innovation E&S has partnered with global green energy investment firm CIP to complete the 'Jeonnam Offshore Wind Farm Complex 1,' with a total capacity of 96 MW, in the waters off Jaun-do, Sinan-gun, Jeollanam-do, and is currently conducting environmental impact assessments for Complexes 2 and 3 (399 MW each), aiming to begin construction by the end of 2027.
5 trillion won, in the waters off Ui-do, Sinan, together with Korea South-East Power and others. POSCO International operates a solar power complex utilizing abandoned salt field sites in the Sinan area, while continuing the development of a 300MW offshore wind farm west of Jaun Island.
Daemyung Energy operates the 92MW Yeongam Wind & Solar Power Plant in Yeongam-gun, Jeollanam-do, which is the largest wind and solar complex in Korea; recently, it secured two Battery Storage System (BESS) projects in the Honam region, including the 'Goheung Naro BESS' in Goheung, Jeollanam-do, and the 'Gwangyang Hwanggeum BESS' in Gwangyang, and has begun construction with the goal of completion in March 2027. However, the difficulty of stably meeting the massive power requirements of semiconductor factories solely through renewable energy is pointed out as a challenge.
This is because semiconductor front-end fabs must operate 24 hours a day without interruption, but solar and wind power have intermittency, with power generation fluctuating depending on weather conditions. An industry official stated, "Experts point out that it is difficult to run semiconductor production plants solely on renewable energy, which has fluctuating power outputs, and that power bottlenecks are inevitable if this is not sufficiently taken into account.
" The official added, "As even major countries like the United States are restarting existing power sources to meet increasing electricity demand, it is virtually essential to configure a power mix that is based on renewable energy but combines stable grid power with various other sources.
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Courtesy of Newsis. [Financial News] As it has been reported that Samsung Electronics and SK Hynix are considering establishing a large-scale semiconductor cluster in the Honam region, the region's domestic renewable energy infrastructure, the largest of its kind, is emerging as a key competitive advantage for location.
Courtesy of Newsis. [Financial News] As it has been reported that Samsung Electronics and SK Hynix are considering establishing a large-scale semiconductor cluster in the Honam region, the region's domestic renewable energy infrastructure, the largest of its kind, is emerging as a key competitive advantage for location.
kakim@fnnews.com Kim Kyung-ah Reporter