Samsung and SK Hynix plan to invest hundreds of trillions of Korean won to build a new semiconductor cluster

BlockBeats News, on June 24, Samsung Electronics and SK Hynix are studying plans to expand semiconductor cluster investments in the Honam region (including Gwangju and South Jeolla Province) and the Chungcheong region, with the investment scale expected to reach several hundred trillion Korean won.

According to the business community on the 23rd, Samsung Electronics and SK Hynix are working on finalizing details regarding a large regional investment plan, including the above, to be announced at the end of the month during the “National Territorial Spatial Transformation (Balanced National Development)” public-private joint meeting hosted by President Lee Jae-myung at the Blue House.

It is reported that both companies are considering simultaneously building memory semiconductor production factories (front end) and packaging factories (back end) in the planned semiconductor clusters in Honam and Chungcheong.

Initially, the industry expected Samsung Electronics and SK Hynix to focus on back-end investment, but as front-end construction was also included in discussions, some analysts believe the investment scale may further increase.

Given that building a semiconductor fab costs at least 60 trillion Korean won, some believe the total investment by Samsung Electronics and SK Hynix could reach 300 trillion to 400 trillion Korean won.

To discuss the specific investment plans and schemes, the President will meet with Samsung Electronics Chairman Lee Jae-yong on the 25th. It is reported that the President already met with SK Group Chairman Chey Tae-won on the 19th.