Samsung Electronics and SK hynix consider packaging plants in Honam and Chungcheong
Samsung Electronics and SK hynix are considering building new semiconductor packaging plants in the Honam and Chungcheong regions. Investment plans worth tens of trillions of won are under discussion, and plans related to the project may be disclosed this month.
10According to the government and political circles, Samsung Electronics and SK hynix are considering building new semiconductor plants, primarily in the Honam and Chungcheong regions. The Honam area, including Gwangju, has been mentioned as a potential location. The review is reportedly being discussed at the government and political levels.
The possibility has been raised that Samsung Electronics could build a semiconductor packaging, or back-end processing, plant in Gwangju. Packaging is the final process in which circuits are etched onto wafers and then assembled into products. It is important for advanced products such as high-bandwidth memory (HBM).
According to multiple reports, the two companies are considering regional investment plans worth tens of trillions of won. It has been reported that related investment plans could be disclosed as early as this month. The specific investment amounts and schedule have not yet been finalized.
Industry sources are discussing advanced packaging facilities as promising investment targets. Samsung Electronics and SK hynix supply HBM to big tech companies such as NVIDIA. Expanding packaging capacity plays an important role in responding to demand.
The government has made balanced regional development a key national policy priority. Against this backdrop, the government and political circles are reviewing ways to expand semiconductor production hubs concentrated in the greater Seoul area to other regions. Related consultations are under way.
At present, semiconductor supply chains and back-end processing facilities are heavily concentrated in the greater Seoul area. If the construction of new regional plants becomes a reality, production hubs are expected to become more dispersed. However, follow-up procedures, including securing sites and building infrastructure, remain.