Samsung Electronics and SK hynix of South Korea are accelerating construction of production bases in the United States, outpacing progress on investment in the Honam cluster.
South Korea's semiconductor giants Samsung Electronics and SK hynix are accelerating the development of production bases in the United States in parallel, with the scale of investment and construction timelines far exceeding those of domestic investment in the Honam cluster. Against the backdrop of pressure from the U.S. government to shift production and efforts to capture demand for AI semiconductors from major U.S. technology companies, the companies' priority on expanding their U.S. bases is becoming increasingly clear.
SK hynix held a groundbreaking ceremony in West Lafayette, Indiana. It plans to invest more than $3.87 billion in a facility that will include an advanced packaging plant and an AI memory R&D center, with completion and the start of mass production of AI memory targeted for the end of 2028. The company intends to collaborate on technology development by leveraging the research capabilities of neighboring Purdue University.
Samsung Electronics is building a foundry cluster in the city of Taylor, Texas, with an investment of more than $37 billion. The first plant is scheduled to begin operations this year, while construction of the second plant is set to begin at the end of this year, with mass production targeted for 2030. The company is also advancing expansion of its 1.4-nanometer process.
The Honam cluster is expected to involve investment on the scale of KRW 800 trillion, but challenges and uncertainties have been identified in areas including power and water infrastructure. Meanwhile, progress on construction of the U.S. bases is intended to bring the companies closer to customers and facilitate the deployment of their technologies.
President Lee Jae-myung (李在明) recently held a private dinner with the chairmen of Samsung Electronics and SK Group. It was reported that measures to support the Honam cluster and responses to pressure to invest in the United States were discussed.