[Column by No Dong-il] Yongin's Success Is Gwangju's Future

TSMC's first plant in Kumamoto, Japan, has been operating since late 2024, three years after construction began in 2021. Initially, TSMC followed a division of labor principle: cutting-edge processes in Taiwan and legacy processes overseas. That is why the Kumamoto plant started with 12- to 28-nanometer technology. But the success of the first plant led TSMC to revise its global strategy and became the decisive springboard for investment in a second plant.
Domestic and international media have pointed first and foremost to the Japanese government's extraordinary, one-stop support as the key to the success of TSMC's Kumamoto plant. The Japanese government quickly disbursed 476 billion yen, or about 420 billion won, in subsidies for the first plant. A land-use change that normally takes one to two years was completed in just four months. Kumamoto Prefecture also resolved environmental impact assessments and other issues in a single package through a dedicated task force. Utilities optimized for semiconductor manufacturing, especially water and electricity, were also crucial. Thanks to the abundant groundwater from Mount Aso and Kyushu's nuclear power plants, TSMC was able to escape the chronic power and drought risks it had faced at its Taiwan headquarters. Local construction firms and workers also played a major role by sharply shortening the schedule through 24-hour shifts, including weekends and nights.
After confirming the success of the first plant, TSMC immediately decided to build a second one. The most dramatic change was the level of chips to be produced. The second plant had originally been planned for 6- to 7-nanometer processes, but after the first plant stabilized and global semiconductor demand surged, the design was changed to cutting-edge 3-nanometer processes. Breaking away from Taiwan-centric thinking, TSMC is turning Kumamoto into a key overseas base for global, cutting-edge AI semiconductors and is moving quickly toward launching the second plant, targeted for late 2027.
Debate and skepticism remain over the construction of a semiconductor plant in Gwangju, or Jeonnam-Gwangju. There are also concerns that the volume and infrastructure for Samsung Electronics and SK hynix's Yongin semiconductor mega-cluster, including Pyeongtaek, could be shifted or dispersed to Gwangju. Some have even called it a project for announcement purposes or for the ruling party's convention. The answer is to achieve a complete success in Yongin first. That is the success formula proven by TSMC in Kumamoto.
If we apply the TSMC Kumamoto case, Yongin is the first plant in Kumamoto, and Gwangju is the second plant. Only by first creating a successful model at the hub the company considers most efficient can accumulated capabilities later be expanded to other regions such as Gwangju. If Yongin, the first button, comes loose, Gwangju, the second button, may never even get a chance to be fastened. The key factor behind Kumamoto's success was the extraordinary, one-stop support from the Japanese government and local authorities. Gwangju is now showing exactly that kind of extraordinary, one-stop support. The pace has been dizzying: an announcement on the 29th of last month, a decision on the Gwangju Military Airport site on the 6th, designation of a land transaction permit zone on the 9th, and news of the restart of Hanbit Nuclear Power Plant Unit 1 in Yeonggwang and a review of new nuclear power plants. Whether the military airport can be relocated, whether nuclear power can be restarted, and whether a dam can be built are all unpredictable in terms of feasibility and timing, but the speed is impressive nonetheless. President Lee Jae Myung even staged a performance by inspecting the military airport by helicopter and presiding over a public-private joint inspection meeting. There was even news that the ruling bloc was considering easing the once-sacrosanct 52-hour workweek rule.
By contrast, the Yongin cluster has been held back for years by permitting and infrastructure issues. Land, water, and power have all become bottlenecks. Recently, Gyeonggi Province Governor Choo Mi-ae chaired a semiconductor super-gap strategy meeting and pledged to drastically shorten permitting times and ensure the responsible completion of power and water supply networks. That is welcome, but it also shows how sluggish progress has been until now. In reality, building the related infrastructure is more than companies or local governments can handle on their own. Cheong Wa Dae and all relevant ministries must step in, review the problems, and encourage the search for solutions.
It is said that President Lee persuaded companies that had planned to pursue Yongin and Gwangju sequentially to move to simultaneous development. That gives Cheong Wa Dae a clear reason to provide Yongin with the same extraordinary, one-stop support as Gwangju. There is also no justification for easing the 52-hour rule only for Gwangju. The urgent task is to remove regulations in Yongin, which the companies have already chosen, and complete the infrastructure at top speed to create a success case. Only after the government establishes a 'Yongin success experience' of ultra-fast support for companies can equally rapid administrative support for Gwangju semiconductors be justified.
Right now, the country must concentrate limited national resources and energy on quickly creating a success story in Yongin, which started first. Only then will Gwangju have a chance to become one pillar of a vast semiconductor supply chain. Yongin's success is the springboard that can turn Gwangju's semiconductor dream into reality. The way to preserve the Republic of Korea's semiconductor lead while promoting regional coexistence is to heed Kumamoto's lesson: secure Yongin first, then expand.
[email protected] Reporter