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South Korea's new "Semiconductor Valley"

The plan to establish the Gwangju-Jeonnam Integrated Special Administrative Region is expected to create momentum for the formation of a new "semiconductor valley" in southern South Korea, promoting industrial restructuring and balanced development.

VietnamPlusVietnamPlus14/06/2026

Amidst South Korea's push to develop its next-generation semiconductor industry, the Gwangju-Jeonnam region is emerging as a new technology hub, bringing together artificial intelligence (AI), renewable energy, semiconductor manufacturing facilities, and a high-quality workforce.

According to the Vietnam News Agency correspondent in South Korea, the plan to establish the Gwangju-Jeonnam Integrated Special Administrative Region next July is expected to create momentum to transform the area into a new "semiconductor valley" in southern South Korea, thereby promoting industrial restructuring and balanced development between regions.

The South Korean government is advancing a plan to build the Southern Semiconductor Innovation Belt, connecting the industrial hubs of Gwangju, Busan, and Gumi (a key industrial city in North Gyeongsang Province) to expand the semiconductor ecosystem, which is currently concentrated mainly in the Seoul metropolitan area.

According to the plan, Gwangju will focus on developing advanced semiconductor packaging technology, Busan on power semiconductors, while Gumi will handle semiconductor materials and components. These localities will be linked together to form a unified industrial chain.

South Korean officials consider advanced packaging technology a strategic area in the global competition for semiconductors serving AI and data centers. This is a high value-added process that helps improve efficiency and save energy for large-scale data processing systems.

Two leading South Korean technology conglomerates, Samsung Electronics and SK Hynix, are reportedly considering expanding their investments in the Gwangju-Jeonnam region, particularly in the field of advanced semiconductor packaging.

Gwangju city currently boasts a rapidly developing AI ecosystem around the No. 3 High-Tech Zone, which houses the National AI Data Center and AI semiconductor research and demonstration facilities.

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Amkor Technology Group, a leading global semiconductor packaging company, is also proceeding with plans to expand its factory here with a total investment of approximately 1 trillion won (equivalent to $658.66 million).

Meanwhile, Jeonnam Province in southwestern South Korea is considered to have a significant advantage in renewable energy and large-scale industrial land. Areas such as Haenam, Sinan, and Yeonggwang are thriving with offshore wind and solar power, providing a crucial foundation for the energy-intensive semiconductor industry.

In addition, a number of AI infrastructure and data center projects are also underway in Jeonnam. Notably, these include the national AI computing center project by the Samsung SDS joint venture in Haenam Solasido and the Korean Stargate data center developed by the SK-OpenAI joint venture in Jangseong.

Experts believe that administrative integration between Gwangju and Jeonnam will help form a unified economic zone, expanding the space for industrial development and increasing the region's international competitiveness.

The South Korean government has now committed to strongly supporting the new special economic zone's semiconductor development strategy through tax incentives, infrastructure support, deregulation, and an investment of approximately 42 billion won by 2030 to build an advanced packaging technology demonstration center.

According to Representative Jeong Jin Wook, a member of the National Assembly's Committee on Industry, Trade, and Energy, Gwangju and Jeonnam have all the necessary conditions for developing the semiconductor industry: from electricity and water to human resources.

Building an integrated ecosystem from design, manufacturing, and packaging to AI applications not only enhances industrial security but also contributes to balanced national development.

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(VNA/Vietnam+)

Source: https://www.vietnamplus.vn/thung-lung-ban-dan-moi-cua-han-quoc-post1116422.vnp

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