South Korean semiconductor industry expansion

South Korea is seeing significant expansion in its semiconductor manufacturing sector through both private investment and large-scale government-led initiatives.

Hanmi Semiconductor has announced a 130 billion won investment to establish its eighth manufacturing plant in Incheon. The company acquired a facility in the Juan National Industrial Complex to address rising demand for artificial intelligence (AI) and High Bandwidth Memory (HBM) equipment. The plant is expected to focus on TC bonders, hybrid bonders, and 2.5D packaging equipment, with mass production targeted for the second quarter of 2027.

Concurrently, the South Korean government, Samsung Electronics, and SK hynix are developing a massive semiconductor cluster in the Honam region. Centered on the Gwangju military airport site, the project aims to construct four fabs, with mass production scheduled for 2030. Efforts are currently focused on securing critical infrastructure, including a daily water supply of 650,000 tons and stable electricity via new transmission lines. To support the project, experts have called for a ‘semiconductor workforce regional settlement package’ to address labor union concerns and assist employee relocation through housing and social services.