South Korean semiconductor clusters secure 20GW power supply agreement

The South Korean government, Korea Electric Power Corporation (KEPCO), major semiconductor firms Samsung Electronics and SK hynix, and local governments have signed agreements to ensure timely power supply for massive semiconductor industrial complexes in the Honam region and Yongin.

For the Honam semiconductor cluster, which is expected to require over 6GW of power, the plan involves an initial supply of approximately 3GW starting in 2029. This will be achieved through a phased approach involving new transmission lines and substations. Costs for the initial power supply facilities will be shared between the public and private sectors, with potential national financial support for private contributions under the Semiconductor Special Act.

In the Yongin National and General Industrial Complexes, power demand is projected to exceed 14GW by 2041. The strategy includes utilizing LNG power plants to meet early demand by 2032 and expanding existing line capacities by 2035. The agreement aims to resolve power supply concerns that have previously hindered large-scale semiconductor investments in the country.