JEONNAM-GWANGJU — Work on a semiconductor cluster in the Honam region aimed at starting mass production in 2030 is picking up speed after President Lee Jae-myung ordered officials to shorten the timeline for relocating the Gwangju military air base, a prerequisite for building the national industrial complex. Concerns had surfaced in some quarters about a possible delay in SK hynix's investment, but the presidential order appears to have restored momentum for both the complex and corporate investment.
According to Jeonnam-Gwangju Special Metropolitan City on the 1st, President Lee said at the third public-private review meeting on mega projects, held at the Blue House on Sept. 29, that the Ministry of National Defense's timeline for completing a temporary relocation of the Gwangju air base by mid-2028 was "too late," and instructed officials to review ways to move it up as much as possible. He also told them to consider revising related laws, regulations and guidelines if necessary.
The air base relocation is the first step for the Honam semiconductor cluster. The government has designated about 8.2 square kilometers — covering the air base site, the planned relocation site for its ammunition depot and surrounding land — as a candidate site for a national industrial complex.
Korea Land & Housing Corporation (LH), the project developer, is pursuing a plan to develop about 2.1 square kilometers of usable land first, rather than waiting for the entire air base to move. Under the plan, land would be supplied to companies in stages as it becomes available, with permits, design work and some site preparation completed by 2027, construction of a semiconductor fab beginning in 2028 and first mass production in 2030.
Work on power and water supply networks, another key condition for the complex, is proceeding in parallel. Electricity needed to run four semiconductor fabs is estimated at 3.1 gigawatts in the first phase and 6.3 gigawatts eventually. The government, Jeonnam-Gwangju Special Metropolitan City, Korea Electric Power Corp., Samsung Electronics and SK hynix are working on plans to connect a large-scale transmission network to the complex. Water supply capacity will also be expanded in stages in line with the fab construction and operation schedule.
Companies are reviewing site and infrastructure conditions. Samsung Electronics conducted a site inspection of the air base and the planned complex, while SK hynix executives and working-level staff visited Gwangju to examine the site and its power and water conditions. Jeonnam-Gwangju Special Metropolitan City is continuing talks with both companies on fab locations and the complex construction schedule.
Local sentiment was rattled recently, however, by concerns over a possible delay in SK hynix's investment. The controversy spread after Jeonnam-Gwangju Special Metropolitan City Mayor Min Hyung-bae referred at a Gwangju Chamber of Commerce and Industry economic forum on Sept. 30 to speculation in some quarters about a withdrawal or slowdown in investment, remarks that some took as suggesting SK hynix might pull out.
The city issued a clarification on the 1st to contain the fallout. It drew a line under the issue, saying the mayor's remarks did not confirm the rumors as fact, and explained that his point was that the community needed to pull together to overcome skepticism and bring in actual investment. Min also wrote on his Facebook page that "with a possible delay in SK hynix's investment being discussed, we will keep the drive for the Honam semiconductor cluster going without wavering."
Along with the industrial complex, the city plans to build out housing, education, medical and cultural facilities for residents. President Lee also called at the meeting for the industrial complex and residential functions to be planned together from the outset. The city envisions linking central Gwangju and nearby areas such as Jangseong and Naju into a 30-minute living zone centered on the semiconductor fabs.
The workforce needed to run four fabs is estimated at about 23,000. Jeonnam-Gwangju Special Metropolitan City plans to expand semiconductor departments at local universities, centered on the Gwangju Institute of Science and Technology (GIST) and Korea Institute of Energy Technology (KENTECH), establish a semiconductor high school and restructure programs at vocational high schools. It also plans to use housing in the Naju innovation city and nearby areas to prepare for a large influx of workers.
"Speed matters more than anything if the Honam semiconductor cluster is to take root properly," Min said. "Turning this opportunity into reality is both a right of the region and a duty we must fulfill."
