April 19, 2024

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SK hynix on March 27 won approval for its plan to build a semiconductor cluster in the Seoul metropolitan area as the government decided to lift development regulations in the region.

The update on the project, valued at 120 trillion won ($136 billion) came after the Ministry of Trade, Industry and Energy requested the Ministry of Land, Infrastructure and Transport last month to ease regulations that limit the total size of industrial zones in the area.

The plan to build four semiconductor fabrication plants in Yongin, just south of Seoul, is anticipated to create some 170,000 jobs. More than 50 subcontractors also plan to move into the cluster, energizing the regional economy as a whole, the ministry added.

The ministry said it plans to provide SK hynix with all necessary support to ensure investments can move forward in a timely manner.

The government will continue to make efforts to promote massive investment projects from the private sector, especially in the chip industry, which is considered a major pillar of the South Korean economy, it added.

The groundbreaking of the cluster is expected to start in the third quarter of 2021, with the completion anticipated to take place in the fourth quarter of 2024.

When the project is completed, Yongin will serve as a base for DRAM and next-generation memory chips for SK hynix, while Icheon, 80 kilometers south of Seoul, will serve as an R&D and DRAM hub, and Cheongju, 137 kilometers from the capital, will be a NAND flash chip center for the chipmaker.

By Ram Garikipati and newswires (ram@heraldcorp.com)