Samsung and SK Hynix Plan to Invest Hundreds of Trillions of Won in New Semiconductor Cluster

On June 24, Samsung Electronics and SK Hynix are exploring plans to expand their semiconductor cluster investments in the Hunan region (including Gwangju and South Jeolla Province) and the Chungcheong region, with the investment scale expected to reach hundreds of trillions of won. According to business sources on the 23rd, Samsung Electronics and SK Hynix are coordinating specific details for a large-scale regional investment plan that will be announced at a public-private joint meeting on "Land Space Transformation (Balanced National Development)" hosted by President Lee Jae-myung at the Blue House at the end of the month. It is reported that both companies are considering plans to build both front-end semiconductor production facilities and back-end packaging plants in the proposed semiconductor cluster in Hunan and Chungcheong. Initially, the industry expected Samsung Electronics and SK Hynix to focus on back-end investments, but with front-end construction also being discussed, analysts believe the investment scale may further expand. Considering that the cost of building a semiconductor wafer fab is at least 60 trillion won, some opinions suggest that the total investment by Samsung Electronics and SK Hynix could reach between 300 trillion and 400 trillion won. To discuss specific investment plans, the president will meet with Samsung Electronics Chairman Lee Jae-yong on the 25th. It is reported that the president met with SK Group Chairman Chey Tae-won on the 19th.