Honam Region 6 GW, Yongin 14 GW... Semiconductor Mega-Project Power Supply Roadmap Finalized

[Financial News] The government, Samsung Electronics, SK hynix, Korea Electric Power Corporation (KEPCO), and Jeonnam-Gwangju Integrated Metropolitan City have signed a memorandum of understanding to ensure timely power supply for the Honam region and Yongin semiconductor mega-projects.
The Ministry of Climate, Energy and Environment said it held the "Power Supply Agreement Ceremony for the Honam Region and Yongin Semiconductor Mega-Projects" on the 12th at KEPCO Gyeongin Construction Headquarters in Jung District, Seoul, and signed three agreements in total. The ceremony brought together the ministry, Jeonnam-Gwangju Integrated Metropolitan City, Samsung Electronics, SK hynix, and KEPCO. They signed one agreement for power supply to the Honam region semiconductor industrial complex and two agreements for power supply to the Yongin Advanced System Semiconductor National Industrial Complex and the Yongin general industrial complex. This laid the groundwork for implementing the timely power supply to the Honam complex and the Yongin national and general industrial complexes, which are key tasks under the "Three Major Mega-Projects for Korea’s Great Leap Forward" announced on June 29. In particular, Jeonnam-Gwangju Integrated Metropolitan City agreed to actively cooperate so that permits needed to build power supply facilities can be processed quickly.
The Honam region industrial complex is expected to generate power demand of more than 6 GW. To allow the first fabs to begin operations, the government plans to build in advance first-stage power supply facilities capable of providing about 3 GW. It will then add second-stage facilities to supply a cumulative total of more than 6 GW to the complex.
For transmission lines, the first stage will build a line branching off from the Shinjangseong-Shingwangju line to connect to the complex. The second-stage line will be finalized after detailed technical reviews and consultations with companies and related agencies. For substations, one will be built inside the complex in the first stage, and one additional substation will be added in the second stage. The cost of the first-stage power supply facilities will be shared by the public and private sectors according to usage ratios. Some of the private-sector contribution will be supported by national finances after consultations among relevant ministries, in line with the Special Act on Semiconductors that took effect on the 11th.
The Yongin national and general industrial complexes were previously set to sharply accelerate the completion of final fabs under the June 29 mega-project announcement, with a goal of doubling memory production capacity within five years. At this ceremony, some details of the power supply agreement signed in November 2024 for the Yongin general industrial complex were revised, and a new agreement was signed for the second-stage power supply to the Yongin national industrial complex. Starting with initial power supply to the Yongin general industrial complex in July this year, power demand for the Yongin national and general industrial complexes is expected to exceed 14 GW by 2041. The national industrial complex will receive power in phases for a total of six fabs through 2041. In the first stage, three 1 GW LNG power plants will meet initial demand by 2032, using short-distance lines near the complex and replacement capacity from aging coal-fired plants. In the second stage, additional demand will be met by 2035 through expanded capacity on existing lines. Ultimately, the plan is to build power supply lines from the East Coast and the central region. For the general industrial complex, initial power will be supplied in the first stage through a transmission line connecting the newly completed Shin-Anseong Substation, finished in July this year, to Dong-Yongin Substation. In the second stage, short-distance lines near the complex and power supply lines from the East Coast will be built early in 2031 and 2032.
Kim Seong-hwan, Minister of Climate, Energy and Environment, said, "The key factor that will determine the success or failure of the semiconductor mega-project is the rapid supply of power," adding, "The government, companies, and local communities will work as one team to dramatically shorten administrative procedures and do everything possible to ensure power is supplied on time as new industrial complexes are built."
[email protected] Lee Yoo-beom Reporter