SK siltron to build a 1 trillion won wafer factory in Gumi

SK siltron headquarters at Gumi National Industrial Complex, where the company's new wafer manufacturing plant will be built. [SK SILTRON]

SK siltron announced Wednesday it will invest 1 trillion won ($806 million) to build a wafer manufacturing plant at Gumi, North Gyeongsang, amid a semiconductor shortage.

The decision was made at a board of directors meeting Tuesday.

SK siltron is a semiconductor wafer manufacturer supplying to companies including SK hynix and Samsung Electronics.

A total of 1.05 trillion won will be invested over the next three years to build the new plant, which will manufacture 300 millimeter wafers. The newly built plant will be 42,716 square meters (459,791 square feet) large and located at the Gumi National Industrial Complex, where its headquarters is located.

Construction will start in the first half of the year, and the plant will start manufacturing wafers in the first half of 2024.

The company decided to make the investment to respond to growing global demand for wafers. According to research announced in January by the U.S. Department of Commerce, the primary bottleneck for semiconductors across the board is wafer production capacity.

The supply crisis is expected to last until 2026, with many wafer manufacturing plants needed.

"Through partnerships with global semiconductor makers and technological advancements, we plan to become a leader in the global wafer industry with quality manufacturing skills," said Jang Yong-ho, CEO of SK siltron.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]