According to Pulse by Maeil Business News Korea,
South Korea’s SK hynix has finally kicked off a 120 trillion won ($94.9 billion) to create a Yongin Semiconductor Cluster encompassing four next-gen fabs, three years after it unveiled its mega chip investment plan in 2019.
Yongin General Industrial Complex Inc., a special purpose company (SPC) created by SK hynix, announced on Tuesday that it submitted a document to Yongin City stating that it will begin construction of Yongin Semiconductor Cluster with hopes to start commercial production in 2027.
SK hynix will invest 120 trillion won into building four semiconductor fabs in Yongin Semiconductor Cluster where more than 50 parts, equipment and machine suppliers will be invited to operate their offices to create a new semiconductor hotbed in the country.
As part of its efforts to enhance the chip ecosystem and create synergy with the suppliers, it also plans to invest 1.22 trillion won in the next 10 years. In details, the company will spend 300 billion won to create a fund for the suppliers, 638 billion won to build a collaboration center based on artificial intelligence (AI), and 280 billion won for joint R&D.
The fabs should be operational by 2027 if construction for the industrial complex is completed by 2025, and the four fabs are expected to churn out 800,000 sheets of wafer in total per month.
The Yongin semiconductor cluster will serve as SK hynix’s DRAM and next-generation memory production base while its fabrication plant M16 in its Icheon headquarters as a DRAM production center. SK hynix’s Cheongju base will serve as a NAND flash memory semiconductor hub.
Its plan for the construction of the Yongin semiconductor cluster was unveiled first in 2019 but it has been delayed due to a series of hurdles like difficulty in securing industrial water, creating power lines and passing environmental evaluations.
The groundbreaking ceremony is scheduled in the middle of next month when President-elect Yoon Suk-yeol is expected to attend to celebrate the first large-scale semiconductor investment after he takes office.
Shares of SK hynix closed 2.25 percent lower at 108,500 won.
By Lee Seung-hoon, Jung Yoo-jung, and Susan Lee
Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.
Source: Pulse by Maeil Business News Korea (April 27, 2022)