Government Fast-Tracks Honam Semiconductor Cluster
The government has unveiled a detailed blueprint to complete the first phase of a semiconductor fab, the core facility of the Honam semiconductor cluster, by 2029. It is pursuing an ambitious goal of wrapping up construction in just 1 year and 6 months, shorter than a typical construction period, by
The South Korean government has outlined a plan to rapidly complete the first phase of the Honam semiconductor cluster's first fab by 2029. The ambitious timeline could be achieved by speeding up the temporary relocation of the Gwangju military airport and securing the site for construction. On August 11, Trade, Industry, and Energy Minister Kim Jung-kwan briefed President Lee Jae-myung on the progress of the "Second Public-Private Joint Inspection Meeting on the Three Major Mega Projects."
The Ministry of Land, Infrastructure, and Transport will lead the government's efforts to swiftly develop the national industrial complex and the industrial complex plan, aiming to launch the Honam semiconductor cluster sooner. The primary challenge is securing the site, which will see the Gwangju 1st Fighter Wing's functions dispersed by the Ministry of National Defense in 2028.
As soon as the Ministry of Trade, Industry, and Energy takes over the site, the first phase of construction will commence by the end of 2029, surpassing Taiwan's TSMC's Kumamoto plant completion time of 1 year and 10 months. By October, an agreement on occupancy in the national industrial complex will be signed, with preliminary feasibility study procedures finalized by year-end.
The government plans to launch a "semiconductor fund" worth 5 trillion won ($3.53 billion) to support semiconductor ecosystem companies, including a separate trade finance program for exporting firms. Samsung Electronics and SK hynix are investing billions in building semiconductor fabs in the Honam region, with the government providing financial support and infrastructure improvements, such as renewable energy, combined heat and power, and liquefied natural gas generation.
The government will also establish the power grid early by shortening the construction period for a 23 km underground transmission line linking substations to the industrial complex. The inter-ministerial support consultative body will assist investment plans in the Chungcheong and Yeongnam regions, while regulatory innovation will be pursued to ensure the success of these mega projects.
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