South Korea's Southwestern Semiconductor Cluster May Expand to Nine Fabs as SK's Multi-Trillion Won Investment Plan Awaits Official Announcement
Nashnova编辑部
The mayor of Gwangju disclosed the southwest semiconductor cluster could grow from four fabs to nine, while SK Group is set to announce a roughly KRW 100 trillion investment plan; neither company has formally confirmed, leaving cluster scale and funding commitments as the two key checkpoints still unverified.
Where does the nine-fab figure come from?
Gwangju Mayor Min Hyung-bae said on August 14 that a scenario emerged during power-supply negotiations: five fabs by Samsung, four by SK — nine in total, more than doubling the original four-fab plan.
Neither company has formally confirmed additional fabs. This means → the nine-fab figure is a signal picked up by local government during talks, not a public corporate commitment.
SK Group is expected to announce roughly KRW 100 trillion in investment for eastern Jeollanam-do, covering AI data centers and production facilities. Analysts note, however, that this sum likely falls within SK's previously announced KRW 400 trillion regional framework — not new money on top.
In plain terms = the headline number looks massive, but it may be old money repackaged under a new label. The real increment remains unconfirmed.
How fast are the initial four fabs moving?
The Korean government is running land preparation, grid construction, water supply, and permitting in parallel rather than sequentially. President Lee Jae-myung has labeled the next year a "decisive window," directing ministries to match the pace of Japan's Kumamoto semiconductor build.
The temporary relocation of Gwangju Air Base functions is scheduled for completion by mid-2028, freeing roughly 8.26 million square meters. Work that does not require the base to vacate — planning, surveying, geological studies — has already started.
Because the base doubles as a joint ROK-U.S. operational facility, adjustments require coordination with Washington. This means → the military-use negotiation may be the least controllable variable on the timeline.
What does the construction timeline look like?
October: sign tenant agreements → November–December: complete the preliminary feasibility study waiver (a process that lets the government skip the standard economic review for large projects) → Before 2027: finish industrial-park planning, design, and permits.
2028: formal construction begins after the base handover. Up to two fabs target completion in 2029; chip mass production is expected around 2030 — roughly one year ahead of the previous 2031 target.
This reflects a government push to compress every approval step through administrative fast-tracking, moving far faster than the standard infrastructure cadence.
How is power supply being addressed?
A power-supply agreement was signed on August 12, with grid buildout starting ahead of fab demand.
Phase one: a spur from the Sinjangsang–Singwangju transmission corridor, plus a new substation inside the park, delivering roughly 3 GW to support initial fab operations from 2029. Phase two: a second substation, pushing total capacity past 6 GW.
The government also plans to shorten the construction cycle for a 23-kilometer underground transmission line, supplementing the grid with regional renewables, energy storage, cogeneration, and LNG power.
Phase-one grid costs will be shared between public and private users by consumption ratio. The government plans to seek fiscal support for the private share under the Semiconductor Special Act, which took effect on August 11.
What is happening at the Yongin cluster in parallel?
SK hynix's Yongin general industrial complex has pulled its final fab completion date forward from 2045 to 2033; Samsung's national industrial complex has moved from 2047 to 2039.
Combined power demand for the two Yongin parks is projected to reach roughly 14.7 GW by 2041. In plain terms = the Yongin cluster alone would consume as much electricity as a mid-sized city.
The Semiconductor Special Act provides the legal framework for government support on power, water, and road infrastructure, and allows priority review or waiver of preliminary feasibility studies. A KRW 5 trillion semiconductor fund is also being planned to support materials, components, equipment suppliers, and SMEs.
Which two checkpoints matter most right now?
Checkpoint one: formal commitments from Samsung and SK on the nine-fab scenario. The figure currently exists only at the discussion level — no corporate sign-off yet.
Checkpoint two: official details of SK's KRW 100 trillion plan — the key question is how much is genuinely incremental versus a repackaging of previously announced frameworks.
This means → the southwest cluster's ultimate scale hinges on whether the companies convert local government's "negotiation signal" into locked-in capital expenditure. Until then, every expansion figure carries a question mark.
Content is for reference only, not financial advice.