en.Wedoany.com Reported - Samsung Electronics and SK hynix have selected the Honam and southwestern regions as the next-generation artificial intelligence (AI) semiconductor production base, primarily due to the feasibility of large-scale land, electricity, and water supply infrastructure. As the proliferation of AI services drives explosive growth in memory demand, existing production bases in the capital region, such as Yongin and Pyeongtaek, are no longer sufficient to meet mid- to long-term needs.

At the National Report Meeting on the Vision for Advanced Industry Development in the Southwestern Region held at the Kimdaejung Convention Center in Gwangju, SK hynix CEO Kwak Noh-Jung and Samsung Electronics Vice Chairman Jeon Young-hyun jointly emphasized the necessity of building new semiconductor production bases.

Samsung Electronics previously announced a total domestic investment of 2,655 trillion won to address the paradigm shift in the AI era, with approximately 425 trillion won allocated to advanced industries in the Honam region. SK hynix also unveiled a mid- to long-term investment strategy totaling 1,100 trillion won, including 600 trillion won for Yongin, 100 trillion won for Cheongju, and 400 trillion won for the southwestern region.

The announcement further clarified the rationale behind both companies' decision to designate the Honam and southwestern regions as the next semiconductor base. Kwak Noh-Jung noted that the AI industry has moved beyond the learning phase into a period of full-scale service expansion, leading to explosive growth in memory demand. He stated: "Based on the assumption that future demand will surge, SK hynix believes that the Yongin cluster alone will not be sufficient to meet demand, necessitating a new semiconductor cluster. The global memory supply shortage is intensifying, requiring the rapid establishment of a new semiconductor cluster, with site selection needing large-scale land and stable electricity and water supply." This is precisely why SK hynix is focusing on the southwestern region. Building a large-scale memory wafer fab requires extensive land and stable electricity and water supply, conditions that the southwestern region is expected to meet.

Samsung Electronics raised the same issue. Explaining Samsung's investment plan in the Honam region, Jeon Young-hyun stated that as AI semiconductor demand expands, the timeline for preparing new sites beyond existing production bases is being accelerated. Starting from Giheung, the Hwaseong campus is fully occupied, Pyeongtaek is in its final stages, and the investment schedule for the next campus, the Yongin National Industrial Complex, is being expedited, thus gradually advancing the timeline for preparing new sites. Samsung Electronics indicated that after evaluating multiple regions, it plans to consider Gwangju as a candidate site, citing factors such as electricity and water supply—essential semiconductor infrastructure—workforce availability, settlement conditions, and potential incentive support. Jeon Young-hyun mentioned: "Among several regions, Gwangju is promising in terms of electricity and water supply—essential semiconductor infrastructure—workforce availability, settlement conditions, and many incentive supports, so we plan to consider it as a candidate site. Once all conditions are met, we will start with two wafer fabs in Gwangju, with an investment plan of approximately 400 trillion won." Samsung's total investment in the Honam region amounts to about 425 trillion won, including approximately 400 trillion won for new semiconductor wafer fabs and about 17 trillion won for building a national AI data center in Solarido, Haenam.

The announcement also proposed an industrial ecosystem concept linking semiconductor production bases with AI data centers. SK Group plans to expand AI data center infrastructure nationwide while building semiconductor production bases. Kwak Noh-Jung stated: "Starting with a scale of 5 gigawatts (GW), we plan to build AI data centers totaling 15GW nationwide in phases. In particular, we will build a 1GW AI data center in the southwestern region, creating an AI industrial ecosystem where semiconductor production and AI computing generate synergies." Samsung also simultaneously proposed AI data centers and future energy investments. Jeon Young-hyun mentioned the plan to build the Solarido National AI Data Center in Haenam and requested the government's prompt support for its launch, while also stating participation in carbon-free energy policies to contribute to energy self-sufficiency.

From actual investment confirmation to execution, the key remains ensuring conditions such as electricity, water supply, land, workforce, and settlement. SK hynix outlined the direction for building a production base in the southwestern region, while Samsung Electronics listed Gwangju as a candidate site. Specific site selection and construction timelines are expected to be determined through consultations with the central and local governments.