Samsung Electronics and SK Hynix will invest 800 trillion won [1] to build new semiconductor fabrication plants in the southwest region of South Korea.

This initiative marks the establishment of a second national semiconductor production base, reducing the industry's reliance on the capital region. Because semiconductor manufacturing requires immense resources, the project depends on the government's ability to secure stable power and water supplies.

The proposed sites include the former Gwangju military airport site and an area designated as “Advanced Zone 3” [2]. To operate these plants, government officials said that at least 650,000 tons of water per day are required [3].

Water is critical for the manufacturing process. Reporter Na Hyun-ho said that a large supply of water is essential to remove foreign substances from semiconductor wafers and to prevent equipment from overheating [3].

Currently, the region's dams provide between 400,000 and 500,000 tons of water per day [2]. To bridge this gap, the government is focusing on expanding capacity. Officials said an additional 300,000 tons of water per day are available from the Dongbok Dam and surrounding reservoirs [1].

Local expectations have risen as the two companies commit to the investment. The scale of the project requires a coordinated effort between the private sector and the state to ensure that infrastructure does not become a bottleneck for production.

“Samsung Electronics and SK Hynix will invest 800 trillion won to build new semiconductor fabrication plants.”

This investment represents a strategic shift in South Korea's industrial geography, moving critical high-tech manufacturing away from the congested capital region to the southwest. By diversifying the location of its semiconductor hubs, South Korea aims to increase national resilience and stimulate regional economic growth, though the success of the plan hinges entirely on the state's ability to deliver massive amounts of utility infrastructure.