South Korea sets 2029 target for first Honam chip fab, launches W5 trillion supplier fund

South Korea has set its first public deadline to complete the initial fab at the planned Honam semiconductor cluster by 2029, moving its chip strategy from broad legal support into a more detailed execution phase. Minister of Trade, Industry and Energy Kim Jeong-gwan told a Cabinet meeting on the 11th that the government would speed the relocation of Gwangju Military Airport, expand power and water infrastructure, and establish a 5 trillion won semiconductor fund to foster materials, parts, and equipment companies. The timetable calls for a tenancy agreement for the national industrial complex in October, a preliminary feasibility study exemption process from November to December, permitting and design work next year, and construction once the airport site is handed over in 2028. The government also plans to secure 650,000 tons of water a day for Honam by 2030 and to stabilize power supply through renewable energy, energy storage systems, combined heat and power, LNG generation, and a faster 23-kilometer underground transmission buildout. In Yongin, power supply schedules for the cluster have also been brought forward, with the SK hynix-linked general industrial complex shifted to 2033 from 2045 and the Samsung Electronics-linked national industrial complex to 2039 from 2047, while final demand of 14.7 GW is to be met by 2041. Seoul paired the infrastructure push with a broader supplier support package, including a 1 trillion won Shared Growth Project over 10 years, a 5 trillion won mutual growth trade finance program, and public procurement plans by 2030 for 700 humanoid robots and more than 1,000 robots in total to help seed physical AI demand. The latest measures build on the Semiconductor Special Act, which took effect on Aug. 11 after passing the National Assembly in February, and they accompany fresh investment plans in the Hoseo and Yeongnam regions and a proposed Mega Special Zone Special Act to shorten permitting and environmental reviews.

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