# Forum puts power, talent at center of southwest chip push > Source: > Published: 2026-09-13 04:55:01+00:00 At Jeonnam-Gwangju semiconductor and AI forum, officials lay out 2030 production target, experts stress need for infrastructure. South Korea’s plan to establish a major semiconductor production base in the southwest is taking shape, with government officials and industry experts saying its success will depend on whether power, water, permits, talent and supplier networks can be put in place in time to support future corporate investment. Those issues were at the center of the Jeonnam-Gwangju Integrated Special Metropolitan City Semiconductor and AI Transformation Global Forum, held at the Gwangju Chamber of Commerce and Industry and co-hosted by The Korea Herald, Herald Business and Namdo Ilbo. The forum brought together government officials, business leaders, academics and overseas experts to discuss the region’s semiconductor build-out, infrastructure needs, workforce development and lessons from overseas clusters. Opening the forum, Jung Won-ju, chair of Herald Media Group, Jungheung Group and Daewoo Engineering & Construction, said the project should be built as a broader industrial ecosystem rather than simply a collection of fabs. “The Honam megaprojects are not simply about building a few semiconductor plants,” Jung said. “They are about connecting advanced processes and AI with materials, components and equipment, research and development and talent development into a single ecosystem.” He said Gwangju’s strengths in artificial intelligence and advanced manufacturing and South Jeolla Province’s land and energy resources could complement each other, provided the region also secures the power, water, logistics and living infrastructure needed to support large-scale chip production. Jung also pledged 10 billion won ($7.5 million) to support development of the semiconductor and AI cluster, saying Jungheung Group wanted to contribute to the region where it was founded. The question of how quickly those plans can be translated into construction was a recurring concern. Min Hyung-bae, mayor of Jeonnam-Gwangju, said the city aims to begin first-phase construction next year, complete it by the end of 2029 and move into initial semiconductor production in 2030. “Our goal is clear,” Min said. “We are working with the determination that the administration must never fall behind corporate investment.” Han Sang-won, chair of the Gwangju Chamber of Commerce and Industry, said land acquisition and investment announcements would not be enough to make the cluster work. “The success of an advanced semiconductor cluster cannot be achieved by securing land and making declarations alone,” Han said. He pointed to stable power and water supplies, faster administrative approvals, transport and logistics links and skilled workers as conditions that would have to advance together. Housing, healthcare, education and cultural facilities would also be needed if engineers and their families are to settle in the region, he added. At the national level, the government is seeking to develop the southwest as a second major semiconductor production base as AI-driven demand pushes Korea to add capacity beyond the Seoul metropolitan area. Lee Min-woo, assistant minister for industrial growth at the Ministry of Trade, Industry and Resources, said the government plans to connect the new production base with regional strengths in materials, components, equipment and advanced packaging. “Semiconductors are the core infrastructure that enables the AI era and one of the few key strategic assets held by Korean industry,” Lee said. He also emphasized the need to move quickly, arguing that delays in power, water and other essential infrastructure could undermine the project before production begins. “Semiconductors are a race against time,” Lee said. The forum then moved from policy goals to examples of how large semiconductor investments are implemented on the ground. Jang Jun-young, an adviser to Herald Business, presented Japan’s Kumamoto cluster, where TSMC’s expansion was backed by large-scale government support and close coordination with local authorities. The case showed how quickly infrastructure, incentives and administrative support can become part of the competition once a company commits to a major project. That comparison led naturally into the practical constraints facing Jeonnam-Gwangju. Lee Soon-hyung, a Dongshin University professor and energy specialist, said four fabs could require 6.4 gigawatts of receiving capacity, significantly changing the power balance in a region that currently generates more electricity than it consumes. “Semiconductors do not require just a lot of electricity. They require electricity that does not fluctuate,” Lee said, stressing that grid reinforcement and reliable delivery would matter as much as generation capacity. Ryu Sang-wan, head of Chonnam National University’s semiconductor research institute, focused on another question about whether the jobs, suppliers and research activity generated by the fabs would actually become rooted in the southwest. “Even if fabs come to our region, whether the people working in them will come from the southwest is a separate question,” Ryu said. Other panelists pushed the discussion beyond the immediate build-out. Rep. Chung Chin-ook, a member of the National Assembly’s industry committee, said power, water, talent and industrial land should be planned for a cluster that could expand beyond the first four fabs, rather than sized only for the initial phase. Oyama Satoru, CEO of Japan-based semiconductor consultancy Grossberg and a former Fujitsu semiconductor strategy executive, said Korea should not simply copy Japan’s recent approach. Japan has relied heavily on public support to rebuild manufacturing, while Korea already has Samsung Electronics and SK hynix as global chipmakers. “It is important to first look at what these companies actually want from the government,” Oyama said. mjh@heraldcorp.com