Samsung to build front-end production in Gwangju and back-end production in Asan... major non-metropolitan investment [Three Mega Projects for a Great Leap Forward]

Samsung and the SK Group will announce investment plans worth more than 1,000 trillion won, plus alpha, in advanced industries at the Blue House on the 29th, including the Honam Semiconductor Cluster. Samsung Electronics will build a front-end semiconductor cluster in Gwangju and also establish a back-end semiconductor plant and an artificial intelligence (AI) data center in South Chungcheong Province. Affiliates such as Samsung Display and Samsung SDI will also join investment plans in the Yeongnam and Chungcheong regions. The plan is the largest ever to support the government's Three Mega Projects and is equivalent to about half of South Korea's gross domestic product (GDP). On the 27th, President Lee Jae-myung described the regional investment plan led by Samsung and the SK Group as a "historic achievement" in a post on social media X (formerly Twitter).
■ Samsung picks Gwangju for front-end production, Asan for back-end production
According to the government and business circles on the 28th, Samsung Electronics has finalized Cheomdan 3 District in Gwangju Metropolitan City as the site for a front-end semiconductor fab and Asan in South Chungcheong Province as the investment site for a back-end fab. Cheomdan 3 District in Gwangju can be linked with AI infrastructure such as the national AI data center and an AI cluster, but securing a sufficiently large site is said to be the key issue. A senior government official said, "Samsung Electronics had initially reviewed Muan County and Haenam County in South Jeolla Province as well, but internally concluded that coastal areas are unsuitable for semiconductor sites because of issues such as salt and humidity."
Through the largest regional investment in its history, Samsung aims to support the government's balanced regional development policy while expanding the semiconductor value chain and accelerating the manufacturing sector's AI transformation, including smart factories.
SK hynix is also understood to be conducting final reviews of investment options in Jangseong County, South Jeolla Province, and overseas.
According to Gwangju and South Jeolla Province officials, at the beginning of this year, when the Honam semiconductor initiative was still in its early stages, the mood was that "bringing in even one semiconductor plant would be a major success." Now, however, there are expectations that as many as five semiconductor plants could be built. If the Honam Semiconductor Cluster grows to as many as 10 fabs in total, combining Samsung Electronics and SK hynix, it would be on par with the Yongin Semiconductor Cluster, which has four SK hynix fabs, and the Yongin Semiconductor National Industrial Complex, which has six Samsung Electronics fabs.
■ Opening the era of Manufacturing 5.0
The government is currently pushing a plan to build a semiconductor belt in the southern region, linked to the Five Mega-Regions and Three Special Self-Governing Provinces Policy for balanced national development.
At the "Three Mega Projects for a Great Leap Forward in Korea" public briefing at the Blue House on the 29th, plans are expected to be fleshed out for a "Second Semiconductor Cluster" in the Honam region, including Gwangju and South Jeolla Province, led by Samsung Electronics and SK hynix; a "Physical AI Comprehensive Belt" in the Yeongnam Region covering aerospace and robotics, led by Hanwha Group and Doosan; and an integrated AI data center in the Gangwon Region (Donghae) and Chungcheong region (Dangjin), led by GS Group and Samsung. Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won are expected to attend in person and announce their investment plans for non-metropolitan regions.
For Samsung, the plan is expected to present a comprehensive package that includes building a semiconductor cluster in the Honam Region through Samsung Electronics, upgrading the semiconductor and display ecosystem in the Chungcheong region through Samsung Electronics, Samsung Display, Samsung SDI and Samsung Electro-Mechanics, and upgrading electrical and electronics manufacturing in the Yeongnam Region through Samsung Electro-Mechanics. Samsung Display is planning a large-scale investment of about 100 trillion won over the next 10 years, based on its Asan and Cheonan campuses, which are production hubs for OLED and next-generation displays. Lee is also expected to visit Samsung Display's Asan Campus on the 2nd of next month and personally present a vision for leading investment in the Chungcheong region to advance the ecosystem for advanced materials and components.
After this announcement, the government is expected to speed up talks with Hyundai Motor Group, LG Group and others to secure nationwide investment in physical AI and AI data centers, which it has designated as the other two of its Three Mega Projects alongside semiconductors. Taken together, these plans are expected to result in an unprecedented wave of domestic corporate investment worth hundreds of trillions of won over the next five to six years and more than 1,000 trillion won over 10 years, spread across the country. Kim Yong-beom, Chief Presidential Secretary for Policy, said on the 26th during an appearance on the YouTube channel "Kim Eo-jun's Humble Is Hard News Factory" that the figures being discussed would be "very unfamiliar," suggesting that the total investment could far exceed 1,000 trillion won.
ehcho@fnnews.com Reporter Jo Eun-hyo Reporter