BusinessNov 3, 2026, 1:35 AM UTC·2 min read

South Korea Aims to Bring Chip Fabs Online 2+ Years Earlier

South Korea's industry minister says the three mega projects' chip fabs will start operating at least two years ahead of plan, backed by about 1,600 trillion won in private investment.

Semiconductor fabrication plant interior with cleanroom equipment, symbolizing South Korea's push to speed up chip fab construction. — Image: zdnet.co.kr

SUMO

Dialo

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South Korea's government plans to bring the chip fabs in its three mega projects into operation more than two years ahead of schedule. Industry Minister Kim Jung-kwan announced the goal on November 2 at a public forum of the National Economic Advisory Council, held at Ferrum Tower in Seoul.

Kim said private investment across the projects totals about 1,600 trillion won, roughly 60% of GDP in the year the projects began. To keep that money flowing without delays, he said, the government will move quickly on one-stop permit processing and on enacting a special act for ultra-wide-area special zones.

Samsung and SK hynix pull timelines forward

The push follows announcements from Samsung Electronics and SK hynix. Both companies said they would speed up equipment investment in fabs already under construction and bring forward the build-out of the Yongin semiconductor cluster. Samsung has cut its target for completing the Yongin fab from 2047 to 2040, while SK hynix has moved its date from 2045 to 2033.

In the southwestern region, each company plans to invest 400 trillion won and build two front-end memory fabs.

Concerns remain

Some observers have warned that the targets could slip because site preparation for the southwestern cluster is insufficient and securing energy supply is difficult. The government has nonetheless kept backing the projects.

President Lee Jae-myung also addressed the issue on the morning of November 2 in his 2027 budget speech to the National Assembly. He said spending on the three mega projects, which cover semiconductors, physical AI and AI data centers, along with AI investment, will rise to 21.3 trillion won, nearly double this year's level. He added that 2 trillion won will go toward expanding production infrastructure, including early operation of fabs in the Seoul metropolitan area and construction of the southwestern cluster.