South Korea is pushing to disperse its semiconductor production base beyond the capital area, but simply moving fabs may deliver limited results, industry voices say. The government plans to allocate over 40 percent of its National Growth Fund to non-capital regions and offer special subsidies to relocating materials, parts and equipment firms. Officials also aim to build regional specialisation, but supply-chain depth, engineers’ response times, power costs and local settlement conditions are seen as decisive.

Samsung Electronics is shifting the focus of its semiconductor lead strategy toward the domestic materials, parts and equipment ecosystem, citing the need to upgrade upstream industries to sustain manufacturing leadership. The company is pressing ahead with large-scale capacity expansion while tightening ties with suppliers and expanding support such as patterned wafers and broader process data sharing. Industry and brokerage reports cite efforts to diversify customers and strengthen supply chains as global competition intensifies.