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[BUSINESS] · South Korea · 3 sources

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Honam semiconductor cluster project targets 2030 mass production

The South Korean government, Samsung Electronics, and SK hynix are advancing a massive semiconductor cluster project in the Honam region, centered on the Gwangju military airport site. The initiative aims to construct four semiconductor fabs, with the first phase targeted for completion in 2029 and mass production scheduled for 2030.

To meet these timelines, the government is prioritizing critical infrastructure. Plans are underway to secure a daily water supply of 650,000 tons using existing dams and recycled water. Additionally, the Korea Electric Power Corporation is working to establish new power transmission lines to ensure a stable electricity supply for the 24-hour manufacturing facilities.

Beyond physical infrastructure, experts emphasize the need for social integration policies. As labor unions have expressed concerns regarding the project, there is a growing call for a ‘semiconductor workforce regional settlement package.’ Such a policy would support employees and their families through housing subsidies, relocation assistance, and improved access to education and medical services to ensure long-term stability in the region.

Entities

Gwangju · Korea Electric Power Corporation