'A project to boost Korea's semiconductor competitiveness and build a new growth base for the southwest'

Minister of Trade, Industry and Energy Kim Jung-kwan. [Yonhap]
Minister of Trade, Industry and Energy Kim Jung-kwan. [Yonhap]

By Yang Geun-hyuk, The Herald Business

Minister of Trade, Industry and Energy Kim Jung-kwan on Saturday defended southwest Korea as a "competitive candidate site" for semiconductor facility investment by Samsung Electronics and SK hynix, amid a political debate over the companies' plans to build in the Honam region.

In a Facebook post, Kim said the southwest had been evaluated as a competitive candidate site "given its high rate of power self-sufficiency, abundant water resources, and strong research and talent base — including Chonnam National University, the Gwangju Institute of Science and Technology and the Korea Institute of Energy Technology."

Kim said that while the companies are accelerating construction of the Yongin semiconductor cluster, they must expand investment to secure industrial competitiveness.

"Samsung Electronics and SK hynix have both decided to complete the Yongin semiconductor cluster far ahead of their original schedules," he said. "Samsung Electronics plans to begin production seven years early, and SK hynix 12 years early."

He added that the companies had long concluded that the Yongin cluster alone would not be sufficient to meet future global demand and competition. "They have been reviewing new candidate sites with large plots of land and stable power and water supply to secure additional production bases," he said. "Given the high land costs and limited infrastructure in the greater Seoul area, regional locations have become a realistic alternative."

Kim said the companies' decision was "not simply a matter of building one fab." He described it as "a national project — an investment to take Korea's semiconductor competitiveness to the next level, and to narrow the gap between the capital region and the provinces while creating a new growth foundation for the southwest, which was relatively left behind during industrialization."

Kim also cited TSMC's expansion from its original base in the Hsinchu Science Park in northern Taiwan to Kaohsiung in the south. "Production in the southern region has now grown to surpass that of the north, achieving the twin goals of strengthening semiconductor competitiveness and balanced national development," he said. "The distance between Hsinchu and Kaohsiung is about 230 kilometers — not so different from the distance between Yongin and Gwangju."

"What matters now is turning the strategic decision that these companies made with an eye on the future into a success," Kim said.

He pledged that the government would "swiftly provide all necessary infrastructure — land, power, water and roads — to ensure the companies' investment plans proceed without a hitch," and said it would work closely with local governments on permits and approvals "to create an environment where companies can focus solely on their investment."


yg@heraldcorp.com