April 19, 2024
Industrials
SK hynix moves to clear red tape for chip cluster
SK hynix is taking steps to overcome the red tape for creating the world’s biggest semiconductor cluster in the Yongin area of Gyeonggi Province
On Feb. 22, the Trade, Industry and Energy Ministry said it plans to ask the Land Ministry to ease the regulations that restrict factory building in the wider Seoul area by next month. If approved, it would mark the first occasion that the Moon Jae-in administration has relaxed such rules.
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The reports come a day after the world’s No. 2 chipmaker said its special purpose company had submitted a letter of intent for the investment in Yongin.
If approved, the 4.48 million square meter sized cluster made of four semiconductor factories will be built after 2022, with SK hyix spending some 120 trillion won (US$106.6 billion) for over 10 years.
The chipmaker said it chose Yongin because it is a good commute from Seoul, while also being close to SK hynix’s Icheon headquarters and Samsung’s semiconductor plant in the same Gyeonggi Province.
Sources in the market and the government both say that the administration is likely to give the green light since it considers semiconductor chips as one of the key pillars for the Korean economy.
By Kim Hye-soo (clairek@heraldcorp.com)
