Groundbreaking at Yongin Site... SK Accelerates 'Triangular System' in Icheon, Cheongju, and Yongin

Land Expropriation Expected to End in October

Ichon·Cheongju·Yongin Triangular System

Expected aerial view of Yongin Semiconductor Cluster. (Photo by Yongin City)

[Asia Economy Reporter Moon Chaeseok] The groundbreaking ceremony for the semiconductor industrial complex, the first of its kind in South Korea, located in the semiconductor cluster of Yongin, Gyeonggi Province, is expected to be held next month. This means SK Hynix will have one more production base.

According to the semiconductor industry on the 26th, the groundbreaking ceremony, attended by SK Group Chairman Chey Tae-won and Gyeonggi Province Governor-elect Kim Dong-yeon, is expected to take place in mid-next month. Even setting aside the three-year process it took to break ground after the government announcement due to water usage regulations, once the complex is completed, it is expected to significantly help increase SK Hynix's production capacity.

The cluster is a project by Yongin General Industrial Complex Co., Ltd. to build a next-generation memory production base on 4.15 million square meters in the Wonsam-myeon area of Cheoin-gu, Yongin, including Dokseong, Godang, and Jukneung-ri. SK Hynix has announced plans to invest 120 trillion won to create a semiconductor production complex, drawing attention. The first phase fab (factory) is scheduled to begin construction in 2025 and is expected to start full operation from 2027. In the mid to long term, four fabs will be completed. Additionally, more than 50 material, parts, and equipment companies will move in.

It is projected to create about 31,000 jobs, attract around 5,000 residents, generate production effects worth 513 trillion won, and induce added value effects of 188 trillion won.

For SK Hynix, this will establish a triangular system with Icheon, Cheongju, and Yongin. Icheon will serve as the research and development (R&D) and DRAM production base, Cheongju will operate as the NAND flash-centered production base, and Yongin is expected to become a production base for DRAM and next-generation memory as well as a hub for semiconductor co-prosperity. Collaboration between SK Hynix and material, parts, and equipment companies will also be activated, contributing to the stabilization of South Korea's semiconductor supply chain.

SK Hynix has announced a 'Semiconductor Co-prosperity Cluster' plan worth 1.22 trillion won to strengthen cooperation with partner companies. For example, coinciding with the groundbreaking of the first semiconductor fab, a co-prosperity fund of 300 billion won will be established to provide interest-free loans to innovative material, parts, and equipment companies and support startup funding.