Samsung Electronics and SK hynix plan to invest a combined 400 trillion won (US$260 billion) to 500 trillion won (US$325 billion) over about a decade in semiconductor front-end fabrication plants in Gwangju and South Jeolla.

The conglomerates reportedly recently chose front-end fabs, the core and costliest part of chip production, instead of the packaging plants many had expected.

The shift came after Lee met SK Group Chairman Chey Tae-won on June 19 and ahead of a scheduled June 25 meeting with Samsung Electronics Chairman Lee Jae-yong.

Chey is reportedly set to announce the investment plan in Gwangju on June 30.

Lee is also likely to unveil plans on July 2 for the Gwangju-South Jeolla fab and a packaging plant investment in South Chungcheong.

The proposal still faces hurdles, including power and water infrastructure, the supply of skilled workers, and concerns about fairness across regions.

The proposal fits Lee’s broader strategy to build AI and semiconductor industries beyond the Seoul metropolitan area.

🔗 Source: Chosun Daily

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