Bird’s eye view of the semiconductor cluster that SK Hynix is promoting in Wonsam-myeon, Yongin-si / Provided by SK Hynix
The four factories that SK Hynix announced in February 2019 that it would invest 120 trillion won to build on a 4.15 million ㎡ (1.26 million pyeong) site in Wonsam-myeon, Cheoin-gu, Yongin-si have not yet aged has started building for 6 years since the establishment of the scheme. According to the original plan, construction work should have started early last year and the factory should be operational early next year, but residents of nearby cities held back, saying that waste water would flow into in, and other cities demanding ‘compensation’, saying there could be a shortage of agricultural water. Land owners in the area where the factory was to be built held out for two years. In competing countries such as the United States and Japan, thanks to active support from the government and residents, cornfields in Texas and Kumamoto are being transformed into large-scale semiconductor factories for Samsung Electronics and TSMC, but in Korea, the construction of a semiconductor factory has been hampered by obstacles such as licensing and civil complaints.
Graphics = Song Yunhye
◇ It is not clear whether construction will start next year on the factory floor.
SK Hynix Yongin Semiconductor Cluster started land selection last year, overcoming various difficulties. However, this time, the construction of an unexpected power plant hinders the project. Semiconductor factories full of large-scale facilities are considered representative power-intensive facilities, along with data centers and steel mills. From the initial planning stage, SK Hynix intended to receive the electricity and steam required for plant operation from a 1,200 MW (megawatt) LNG (liquefied natural gas) power plant built and operated by its affiliate, SK E&S. Construction was due to start in May this year, but the Ministry of Trade, Industry and Energy, the responsible ministry, put the brakes on building the power station on the basis of ‘carbon neutrality’. LNG power plants produce power using natural gas, a fossil fuel, and the government began looking closely at plans to build new LNG power plants from the start of this year, saying it would meet carbon reduction goals such as ‘neutrality carbon by 2050′. The last thing SK Hynix expects is for this LNG power plant to be included in the ’11th Basic Electricity Supply and Demand Plan’, which is expected to be published in the first half of this year. If you are left off the list this time, you will have to wait another two years until the next scheme is set up.
Aerial view of SK Hynix’s semiconductor cluster site development site in Wonsam-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, designated as a semiconductor specialty complex (Taken in November 2023) / Yongin General Industrial Complex (YIGIC).
It is reported that SK Hynix will produce high bandwidth memory (HBM), which has recently attracted attention as a key component of AI semiconductors, at the Yongin semiconductor cluster. In a situation where major countries such as the United States, competing for the big gap in semiconductors, are rapidly expanding their domestic production bases, there are concerns that only Korea could be left behind in the race. A semiconductor industry official said, “Given the size of the Yongin SK Hynix semiconductor plant, which has four factories, there is little alternative if the construction of the LNG power plant is canceled.” According to the industry, the power capacity required for one semiconductor factory is more than 700MW, and for four factories, it reaches 3,000MW. In fact where it is difficult to build a transmission and distribution network, problems with electricity supply and demand are bound to arise without building a separate power station.
◇ Support is unexpected… Everything is different here and there
It is pointed out that the construction process of the SK Hynix Yongin semiconductor cluster clearly shows the reality of Korea, which is different from other countries, where the government and local governments work as ‘one team’ to attract semiconductor factories conductors. SK Hynix set up a plan to invest 120 trillion won in 2019, but has wasted the last 5 years for various reasons, and has had to give a ‘donation’ every time licensing is delayed.
The United States is fighting the ‘semiconductor competition’ with subsidies – On the 25th, US President Joe Biden visited the Micron factory construction site in Syracuse, New York and held a wafer with the name of his country’s company Micron after’ to engrave on it. On this day, President Biden personally announced an 18 trillion won subsidy and loan assistance plan. Micron CEO Sanjay Mehrotra (center photo) and New York Governor Cathy Hocal (right) attended this event. /AP Yonhap News
When Anseong City became a problem with wastewater, he decided to create an industry-related semiconductor hinterland industrial complex in Anseong, and when Yeoju City asked for a ‘coexistence plan’ due to water issues, he promised to buy Yeoju rice and send partner companies to yeoju City. The residents of the land where the factory was to be built also opposed the expropriation. All these obstacles have been resolved by the end of 2022, but this time, the power plant is holding back.
Voices are calling for deregulation and the preparation of support measures for the semiconductor industry, which is a national strategic industry and our No. 1 export item. Ahn Ki-hyeon, executive director of the Korea Semiconductor Industry Association, said, “Po the longer factory construction is delayed for various reasons, the more we miss the timing, and our semiconductor industry has no choice but to decline.”
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