Samsung Electronics, SK Group and Amkor Technology will invest a combined about $655 billion to build a new semiconductor manufacturing hub in southwestern South Korea, the government said on July 30, as it seeks to establish a second major chip-production base beyond the Seoul metropolitan area.
The investment plan was announced at the government’s Southwest Advanced Industry Vision Conference, one day after officials unveiled a national industrial strategy centered on semiconductors, physical artificial intelligence and AI data centers.
Under the plan, SK Group will invest approximately $343 billion to construct two memory-chip fabrication plants and a 1-gigawatt AI data center in the region.
Samsung Electronics said it will invest about $310 billion to build two memory-chip fabrication plants and a national AI computing center in the Honam region.
Combined, the two companies will spend roughly $584 billion on semiconductor manufacturing facilities and an additional $69 billion on AI data centers and computing infrastructure.
Amkor Technology will invest approximately $730 million to expand its advanced semiconductor packaging facility in Gwangju.
The government said it will support the projects by expanding water supplies through reservoirs and recycled wastewater systems while accelerating construction of electricity generation and transmission infrastructure required for semiconductor production.
Officials also pledged to reduce the time needed to develop industrial complexes to less than five years, about half the current timeline, and expand semiconductor engineering programs in southern South Korea to help meet future labor demand
The government plans to establish a presidential Semiconductor Special Committee and a semiconductor innovation task force under proposed semiconductor legislation.
Authorities also said they will designate at least one special industrial zone in the southwest under pending legislation governing large-scale economic districts. The program would provide regulatory relief, government funding covering up to 100% of critical infrastructure costs—including electricity and water—and regionally differentiated tax incentives aimed at encouraging corporate investment and employee relocation outside the capital region.
The strategy also includes developing an advanced industrial city that integrates large-scale manufacturing, research and commercialization. Officials said permitting procedures will be streamlined and the project will be linked with nearby universities, research institutes and innovation parks to strengthen industry-academia collaboration.
The central and local governments also plan to improve transportation, housing, education and other residential infrastructure while enhancing connectivity with high-speed rail, expressways and Muan International Airport.
Following the announcement, SK Hynix, Samsung Electronics and Amkor Technology signed a memorandum of understanding with the Ministry of Trade, Industry and Energy and other government agencies to support investment and accelerate development of the southwest semiconductor ecosystem
A government official said the $655 billion investment commitment would “redraw the country’s economic map,” adding that authorities would continue supporting the projects to ensure they move from planning to execution.
