Key points
- The city targets first production in June 2030
- The plan calls for 400 trillion won from each company
- The city targets initial power supply by the end of 2028
- Military facilities must relocate to clear the site
Samsung Electronics (005930) and SK Hynix (000660) plan to build an 800 trillion won ($585 billion) memory-chip cluster in southwestern Korea. The local government wants the first chips rolling out in June 2030. Before that can happen, military facilities must move and the site needs power and water.
The project would turn about 2.5 million pyeong (8.3 square kilometers) of Gwangju's military airport land into a chipmaking hub. Each company would invest 400 trillion won ($293 billion) and build two memory fabs, according to JoongAng Economy News (중앙이코노미뉴스). The plan was announced on June 29 at a national briefing chaired by President Lee Jae-myung.
Kim Ki-hong, who leads semiconductor support for the Jeonnam-Gwangju Integrated Special City (전남광주통합특별시), outlined the timetable at a September 22 briefing, Newspim (뉴스핌) reported.
Samsung shares rose 3.6 percent in Seoul on Wednesday to 286,500 won ($210). SK Hynix gained 1.2 percent to 1,863,000 won ($1,363).
What has to happen first
The city plans to develop about 630,000 pyeong (2.1 square kilometers) of the site first, rather than wait for the whole area to be ready. That section includes land now used by a munitions depot that is due to move. Site preparation there could begin as early as the first half of 2027, JoongAng Economy News reported. The city plans to finish approvals and hand over that land in 2028, according to Newspim. Construction of the first two memory fabs is targeted for 2028, Asia Business Daily (아시아경제) reported.
The site was named a candidate national industrial complex in July. The city is aiming for formal designation in the second half of 2027. Korea Land and Housing Corporation, the project's preliminary developer, plans to start design work in October.
The key hurdles are moving the air base and lifting greenbelt restrictions on the land, JoongAng Economy News reported. The city's goal is to move the Gwangju base's functions out by July 2028. Muan County was selected as the candidate relocation site on August 28, and a support plan for the surrounding area is still being drawn up.
"The military airport relocation is at the stage of drawing up a support plan for the surrounding area, and we are reviewing the support projects Muan County submitted," Kim said.
Power and water are scheduled to arrive in stages. The power line project was exempted from a preliminary feasibility study at the September 1 cabinet meeting.
| Target date | Power capacity | Daily water supply |
|---|---|---|
| End of 2028 | 3.1 GW | 150,000 tons |
| End of 2029 | – | 350,000 tons |
| End of 2030 | – | 650,000 tons |
| Final target | 6.3 GW; date unspecified | 1.06 million tons by 2032 |
Dashes indicate no separate power milestone listed.
The first power supply would run through about 23 kilometers of underground line from existing substations. The first water would come from the Juam and Boseong River dams. The city estimates the four fabs will need about 23,000 workers, and it plans new university chip programs and a new semiconductor high school.
The city plans to sign siting agreements with both companies in October.
How it fits with other Korean projects
The Honam fabs come on top of the companies' existing plans elsewhere in Korea. In August, SK Hynix's board approved 54.3 trillion won ($39.7 billion) for two new plants in Yongin and Cheongju. The Cheongju plant's first cleanroom is targeted for December 2028, and the Yongin plant's for June 2029.
The Kim quote is translated from Korean. Won figures are converted at 1,366.70 won to the dollar, the Hana Bank rate on Naver Finance on September 23, 2026. One pyeong is about 3.3 square meters.
