By Kang Gahui

SK Hynix, Samsung Electronics and Amkor Technology have announced their combined investment of KRW 896 trillion in the country's southwest region, the site of the second national hub for semiconductor production.

The Ministry of Industry, Trade and Resources on June 30 announced this at a public briefing on the national vision to develop high-tech industries at Kimdaejung Convention Center in Gwangju.

The three companies that day announced their investment plans for the region at the event.

SK Hynix pledged investment of about KRW 470 trillion to build two core memory fabs and a one-gigawatt data center for artificial intelligence (AI).

Samsung Electronics will invest KRW 425 trillion in the Honam region spanning Gwangju and the provinces of Jeollanam-do and Jeollabuk-do to build two memory fabs and a national AI computing center.

Both companies plan to invest a combined KRW 800 trillion to build memory fabs and KRW 95 trillion to set up state-of-the-art infrastructure such as data and computing centers.

Amkor will spend KRW 1 trillion to expand its cutting-edge packaging fab in Gwangju.

The government will build infrastructure customized for the region to align with the planned construction of the fabs.

Recycled water from dams and sewage will be supplied as industrial water, and the quick setup of power generation facilities and transmission networks will assist fab operations.

The objective is to halve the time required to develop industrial complexes to five years and ease regulations by designating at least one special megazone in the region under the pending Mega Special Zone Act.

"The investment of KRW 896 trillion is on a scale that will revamp the economy of the southwest region as well as the country's," the ministry said. "We will use this investment as momentum to develop the region into the country's second semiconductor production hub after the Seoul metropolitan area as well as a new strategic base for cutting-edge industries."

kgh89@korea.kr