Gov't to move up Yongin chip cluster construction to 2026 with fast designation

Home > Business > Industry

Gov't to move up Yongin chip cluster construction to 2026 with fast designation

Published: 26 Dec. 2024, 17:29

PARK EUN-JEE
[email protected]

Audio report: written by reporters, read by AI

A bird's-eye view of the future site of the Yongin semiconductor national industrial complex, provided by the Ministry of Land, Infrastructure and Transportation [YONHAP]

The Korean government has moved up the construction start date of a mega-sized chip cluster in Yongin, Gyeonggi, to December 2026 from June 2030 by expediting regulatory approval for the site.

The Ministry of Land, Infrastructure and Transport designated the cluster a national industrial complex on Thursday, three months ahead of schedule.

With a groundbreaking target of 2026, the first semiconductor factory in the industrial park is expected to start operations in 2030.

The ministry anticipated that the site could attract 360 trillion won ($246.4 billion) worth of investment as big players like Samsung Electronics and smaller suppliers will build facilities there.

Samsung, the world's largest memory chipmaker, already operates several chip facilities in Yongin and surrounding areas, making the region a strategic location for the new complex. Chipmaking rival SK hynix has also unveiled investment plans to create separate chip facilities in Yongin.

The Yongin semiconductor national industrial complex is a mega-sized strategic national project that will span 7.28 million square meters (78 million square feet). It will house six large-scale semiconductor fabs, three power plants and over 60 small and medium-sized suppliers specializing in materials, parts and equipment.

The complex is expected to create 1.6 million jobs and generate 400 trillion won in added value.

The government has also included plans to develop a residential town accommodating 16,000 households, along with parks and other essential facilities to support the growing workforce.

Additionally, transportation infrastructure will be expanded, including expressways and railways, to manage the anticipated rise in demand by 2030.

"We will continue to build the Yongin national industrial complex as quickly as possible, and do our best to make it a landmark industrial complex in Korea," Land Minister Park Sang-woo said.

Samsung Electronics said it welcomes the early designation and asked for the government's full-fledged support for the chip industry, which faces strong headwinds in a competitive global market.

"We ask for continued interest and support so that the Yongin industrial complex can be established on schedule and contribute to the development of the Korean semiconductor industry and the national economy," said Kim Yong-kwan, president of Samsung Electronics' chip division.

BY PARK EUN-JEE, YONHAP [[email protected]]