Samsung, SK Hynix weigh first chip packaging plants in South Korea's Honam region

Samsung Electronics and SK Hynix are evaluating locations in South Korea's Honam region for new semiconductor packaging facilities, reflecting strategic adjustments in the Korean semiconductor industr... Read original →

Samsung and SK Hynix’s move to establish advanced packaging plants in Honam signals a strategic pivot: packaging is no longer a back-end afterthought but a critical performance lever driven by HBM and chiplet architectures. This shift will pressure Korean equipment and materials suppliers to rapidly mature capabilities in 2.5D/3D TSV and hybrid bonding. Geopolitical tensions are accelerating supply chain localization, reducing reliance on OSAT capacity in Taiwan, China—but at a 15–20% capex premium and acute talent shortages. TSMC may counter with CoWoS capacity ramp-ups, while the U.S. and Japan bolster domestic OSAT ecosystems. Within 18 months, Korea’s domestic packaging self-sufficiency could exceed 40%, catalyzing an integrated semiconductor cluster in Honam and redrawing East Asia’s tech supply map.