SK hynix eyes Cheongju for advanced memory chip plant

SK hynix's plant in Cheongju, North Chungcheong [SK HYNIX]

SK hynix is considering building a chip factory in Cheongju, North Chungcheong, to ramp up production of advanced memory chips.

The local press is reporting that the world’s second largest memory chipmaker has chosen the city to build a new chip plant, although a spokesperson said the location has not been decided.

“We are reviewing a plan to add a new manufacturing plant, but we haven’t made a decision about the location yet,” said a spokesperson for SK hynix.

That comment is in line with what President Noh Jong-won stated on a conference call last month.

“To meet growing demand in the market, we should crank up production capacity for the years to come,” Noh said, “We are reviewing the need to construct another plant before a fab in Yongin, Gyeonggi, is completed.”

SK hynix announced the 120 trillion-won Yongin large-scale semiconductor cluster in 2019, but it was stalled until last month due to red tape.

A unit responsible for the project sent a notice of commencement to the Yongin city government last month to make official the start of construction.

Still, given the delay in the Yongin project, the chipmaker may opt to build a new plant in Cheongju where it already operates plants.

“Cheongju can be an easy option for SK hynix because the city already has an industrial site that fits the need of the chipmaker and could avoid the regulations imposed in the metropolitan area near Seoul,” said a source in the industry.

“The chipmaker would find it hard to expand in Icheon, Gyeonggi, since the region is categorized as the metropolitan area and lacks available land,” the source said.

Noh Young-min, former chief of staff to the President Moon Jae-in, who is running for governor of North Chungcheong, told reporters last month that discussions over the new plant have made significant progress.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]