With the passage of the Special Law on Semiconductors by the National Assembly, the semiconductor industry landscape is shifting from the capital region to the southern region. Taking advantage of its prepared infrastructure in electricity, water, and renewable energy, Jeollanam-do is now actively pursuing the designation of a national semiconductor cluster.
The Special Law, passed on January 29, designates semiconductors as a core strategic industry and allows for direct support from the national and local governments for industrial infrastructure such as electricity, water, and roads. With the selection of pre-feasibility studies, exemptions, and the establishment of a specialized organization under the presidency, conditions are being created to accelerate the formation of a semiconductor cluster.
Jeollanam-do's push for the designation of a national semiconductor cluster is driven by its unique conditions in electricity and water supply compared to the capital region. For instance, in order to operate 6 semiconductor fabs, 107 million tons of water and 9.3GW of electricity are required daily. However, the capital region has only 0.9% of water surplus and faces limitations in electricity supply due to transmission network saturation. Considering the demand for 100% renewable energy (RE100), the capital region's location is a burden for companies.
On the other hand, the western region of Jeollanam can supply over 1.3 million tons of water daily through rivers like Yeongsan, Geumho, and Yeongsan. By expanding solar and offshore wind power projects jointly undertaken by Jeollanam and Gwangju, they can establish a 17.5GW renewable energy base.
Jeollanam-do sees these conditions in Jeollanam and Gwangju as competitive strengths that meet the three major requirements of global semiconductor companies: electricity, water, and RE100.
Taking advantage of the passage of this Special Law, Jeollanam-do is actively planning the formation of a "semiconductor tri-cluster" that combines Jeollanam and Gwangju into one mega-industrial zone.
Under this plan, Gwangju will serve as a hub for talent and research and development, the western region of Jeollanam will be a production hub based on large-scale electricity and water supply, and the eastern region will be a hub for small and medium-sized enterprises and future converging industries.
This model of a semiconductor ecosystem in a single mega-region, completing design, manufacturing, and small and medium-sized businesses, is a strategic direction different from the capital region.
Jeollanam-do is working on a "semiconductor cluster formation consulting project" to prepare a comprehensive strategy for the national designation of the Jeollanam-Gwangju semiconductor cluster and attracting semiconductor fabs. The project aims to start in the first half of 2026.
Kim Ki-hong, the head of the Jeollanam-do Strategic Industries Department, stated, "The Special Law on Semiconductors provides a institutional foundation for Jeollanam and Gwangju to leap as a hub of the southern semiconductor belt," adding, "Through the construction of a 'tri-cluster' connecting the RE100 national industrial complex, advanced packaging cluster, and future advanced national industrial complex, we will lead the leap to a special city of Gwangju with a population of 4 million."