Samsung Electronics to build second semiconductor fab in Gwangju

Lee Jae-yong says he expects support on power, water and workforce

Chungcheong region to become HBM packaging hub

Robot demand tied to physical AI to be concentrated in Gumi, North Gyeongsang Province

Samsung Electronics Chairman Lee Jae-yong presents the company's investment plan at a national briefing on three major mega-projects, held Sunday at Cheong Wa Dae under President Lee Jae Myung. [Presidential Press Photographers Association/Yonhap]
Samsung Electronics Chairman Lee Jae-yong presents the company's investment plan at a national briefing on three major mega-projects, held Sunday at Cheong Wa Dae under President Lee Jae Myung. [Presidential Press Photographers Association/Yonhap]

Samsung Electronics has selected Gwangju as the candidate site for its next semiconductor fabrication plant. Chairman Lee Jae-yong said the company "has planned Gwangju as the candidate site, where significant incentive support is expected — including power, water, workforce and various infrastructure."

Lee made the remarks Sunday at the Cheong Wa Dae banquet hall during a national briefing on three major projects billed as a leap forward for South Korea. He said the AI-driven shift in the technology paradigm is moving "at an unimaginable speed," and that the market views even aggressive investment by chipmakers as insufficient to meet explosive demand. He added that the investment timeline for the Yongin national industrial complex — following existing sites in Giheung, Hwaseong and Pyeongtaek in Gyeonggi Province — has been significantly accelerated, and that the time to prepare a new complex has also moved up.

Minister of Trade, Industry and Energy Kim Jung-kwan speaks at the national briefing on three major projects held Sunday at the Cheong Wa Dae banquet hall, pledging to complete the Greater Seoul semiconductor production hub ahead of schedule. [KTV capture]
Minister of Trade, Industry and Energy Kim Jung-kwan speaks at the national briefing on three major projects held Sunday at the Cheong Wa Dae banquet hall, pledging to complete the Greater Seoul semiconductor production hub ahead of schedule. [KTV capture]

Minister of Trade, Industry and Energy Kim Jung-kwan said Sunday that Samsung Electronics and SK hynix each plan to build two fabs in the southwestern region — four in total — with a combined investment of 800 trillion won ($518 billion). The timeline for the semiconductor cluster under construction near Yongin has also been moved up. SK hynix's Yongin general industrial complex, originally set for completion in 2045, is now targeted for 2035 — a 12-year acceleration — while Samsung Electronics' Yongin national industrial complex, previously slated for 2047, aims for completion in 2040, seven years earlier.

Beyond the southwestern fab investment, the Chungcheong region will be developed as a packaging hub. Lee said HBM — indispensable for AI model training and inference — requires cutting-edge chip-stacking technology and processes on par with those of a main fab. For that reason, he said, Samsung will concentrate HBM fab investment in the Chungcheong region, including Cheonan and Onyang, alongside existing back-end semiconductor facilities.

Samsung Electro-Mechanics, which produces MLCC — often called the "rice of semiconductors" — and semiconductor substrates, will continue to expand around Busan. Lee said the company will scale up investment centered on its Busan factory for advanced package substrates that connect semiconductor chips to mainboards.

Demand for humanoid robots — an area where physical AI companies are competing aggressively — is expected to surge not only in factories and industrial settings but also in homes, restaurants, hospitals and care facilities across society.

Lee said Samsung Group plans to concentrate its internal AI data center and robot-related investment in Gumi, North Gyeongsang Province. He added that Samsung SDI will focus investment in South Gyeongsang Province and Ulsan for next-generation all-solid-state batteries and batteries for energy storage systems, an essential component of renewable energy infrastructure.

Investment in next-generation shipbuilding will continue in Geoje, South Gyeongsang Province, while Samsung's biotech business — a strategic growth area — will be concentrated in Songdo, Incheon.

Lee said he is "convinced that bringing together businesses, the government and local authorities can make South Korea irreplaceable." He pledged to maintain a sense of urgency as a business leader and to focus on customer orientation, quality, cutting-edge technological innovation and talent development — so that Samsung can build the overwhelming competitive edge the president called for in the global arena.

Meanwhile, Samsung Electronics Vice Chairman and CEO Jeon Young-hyun made three requests to President Lee Jae Myung. Jeon asked for "swift, one-stop administrative support to dramatically accelerate the pace of investment," and called on the government to take responsibility for building national infrastructure including power and water supply.

On electricity costs in particular, Jeon asked the government to guarantee a stable power supply at competitive prices on par with those in rival countries. He also asked for dramatically improved residential living conditions in the regions where investment will be concentrated.

President Lee Jae Myung said he would set up a dedicated team within Cheong Wa Dae to "take firm charge until the end of my term." He promised to ensure clear advantages on electricity rates in line with the principle of local production for local consumption, and said he intends to make large-scale investments to improve residential conditions as part of balanced national development. "I will take clear responsibility with the spirit of a partner," he said.

Samsung Electronics and SK hynix have unveiled massive investment plans spanning semiconductors, batteries and displays as part of a sweeping bet on AI supremacy, including the creation of a second semiconductor cluster in the Honam region.


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