en.Wedoany.com Reported - The South Korean government's push for Samsung Electronics and SK Hynix to build new semiconductor factories in South Jeolla Province and Gwangju is rapidly gaining momentum, but the industry is reacting with confusion, viewing this investment decision as driven more by political than market logic. It is reported that the government's discussed plans include not only back-end wafer fabrication plants previously considered but also front-end wafer fabs, with total investment potentially reaching hundreds of trillions of won. Kim Hyung-joon (Professor Emeritus at Seoul National University), head of the next-generation intelligent semiconductor project group, pointed out that investment in the national core semiconductor industry should not be determined by market logic but by political factors; the correct sequence should be for the government to first allocate budgets to strengthen infrastructure such as electricity and water, after which companies can consider investment.

Industry insiders express skepticism about the feasibility of the South Jeolla and Gwangju semiconductor factory construction plan. Kim Hyung-joon stated that building a semiconductor wafer fab costs approximately 60 trillion won, and currently no one can guarantee that future demand will increase enough to justify additional investment beyond already confirmed plans; companies have been finely adjusting the pace of semiconductor factory construction based on market conditions, and cannot be blindly asked to add more factories. Currently, Samsung Electronics is executing investments to expand its Pyeongtaek semiconductor plant to Phase 6 by around 2030, and is investing 360 trillion won to build six semiconductor factories in the Cheoin-gu area of Yongin City, with construction planned to begin in 2028; discussions on building a back-end wafer fab in Vietnam are also actively underway. SK Hynix plans to invest a total of 600 trillion won in the Yongin semiconductor cluster by 2050 to build four wafer fabs, with Phase 1 (Y1) having started construction in February 2025; it is also pushing forward with a new back-end wafer fab (P&T7) in Cheongju and an advanced packaging plant in West Lafayette, Indiana, USA. A senior executive at a domestic semiconductor manufacturing company, referred to as A, stated that although artificial intelligence (AI) infrastructure investment keeps semiconductor demand strong, executing only the already established wafer fab construction plans should be commercially sufficient to meet demand, especially since recently built fabs are very large, making it easy to increase output.

Some voices suggest that the government should enhance the persuasiveness of its investment proposals, and that measures for supply chains and personnel allocation are also urgent. Kim Hyung-joon emphasized that the government should first develop a master plan based on its own budget to enrich infrastructure such as electricity and water, and then proceed with discussions to attract corporate investment; rushing to demand regional investment as currently done will only tie companies' hands. Semiconductor engineer B stated that from a supply chain management perspective, semiconductor production bases should be as close to each other as possible; if Samsung Electronics and SK Hynix act, related partner companies must also invest accordingly, but whether there are support measures for this is questionable. Another insider, C, revealed that there is still considerable skepticism within Samsung Electronics and SK Hynix about the new factories in South Jeolla and Gwangju, as no prior discussions have been held with employees; if personnel are assigned to South Jeolla and Gwangju without sufficient persuasion, employee resistance will be significant due to the complete change in living environment. It is reported that President Lee Jae-myung met with SK Group Chairman Chey Tae-won on the 19th and will meet with Samsung Electronics Chairman Lee Jae-yong on the 25th; on the 29th, a meeting between the President and major corporate leaders will be held, during which the government will formally announce the investment plans of key companies.

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