Samsung, SK hynix's 800 trillion won chip cluster targets mass production by 2030

The two semiconductor giants plan to start full-scale production at a $592 billion memory chip cluster in Korea's southwest region in just four years to keep pace with global AI demand.

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The government announced on July 6 that it had decided to build a semiconductor industrial complex for the Honam region on the site of the Gwangju military airport. The photo shows the airport’s runway and surrounding area.

Samsung Electronics and SK hynix's 800 trillion won ($592 billion) memory chip cluster in the southwestern Honam region is targeting first mass production in June 2030. Gwangju is racing to build out power and water infrastructure starting next year, aiming to break ground on the memory chip plants in 2028.

The cluster will comprise at least four memory chip plants, which the two chipmakers have pledged to build to keep pace with AI-driven demand. The site spans 8.3 million square meters (2,040 acres), freed up by the relocation of a military airport in Gwangju.

For power, construction on transmission lines is set to begin in June 2027 with the first phase supplying 3.1 gigawatts. Total capacity is to reach 6.3 gigawatts, with the first phase targeted for December 2028. A public-private working group on the project's power supply was formed on July 29, and a formal power supply agreement was signed on Aug. 12.

Gwangju is now asking the central government to lift greenbelt restrictions early next year so site preparation can start ahead of schedule, clearing the way to break ground on two memory fabs in 2028.

The project will expand the Dongbok Dam to supply the chip fabs with water after regulators waived a standard review normally required for large state-funded projects. The city plans to supply 150,000 tons of water a day in the beginning, and to raise the capacity to 1.06 million tons by December 2028.

Samsung and SK hynix are moving to expand their chip plants as demand continues to outpace supply. By 2030, Samsung is aiming to build and bring online two more fabs in its existing chip cluster in Pyeongtaek, Gyeonggi: one in Yongin, Gyeonggi, and one in Gwangju. For its part, SK hynix is planning to build three additional memory fabs: two in Yongin, Gyeonggi, and one in Gwangju. 


BY LEE JAE-LIM [[email protected]]