SK hynix’s new plant in Yongin to pick up speed
SK hynix solved a problem that has hindered the global-leading chipmaker from building new plants in Yongin, Gyeonggi Province, by striking an agreement to take in industrial water from the nearby city of Yeoju, according to the Ministry of Trade, Industry and Energy, Monday.
The industry ministry said SK hynix, Yeoju City and Korea Land &Housing Corporation (LH) signed a memorandum of understanding (MOU) for mutual growth at the National Assembly.
In 2019, the government announced its plan to create a semiconductor cluster in Yongin, featuring 50 chip companies including SK hynix. The company said it would invest 120 trillion won ($88.3 billion) in the city to build four chip-manufacturing plants on the 4.48 million-square-meter site.
However, the company has yet to start construction of the facility due to the water issue. Although SK hynix won approvals for the construction of the industrial complexes and the installation of essential infrastructure such as electricity, the company hadn’t reached an agreement with Yeoju City regarding the construction of water facilities.
To solve the issue, the industry ministry formed a task force and intervened between Yeoju City, government agencies and companies.
“Under the agreement, the government will review whether it is possible to improve regulations related to new and expanded factories in the Seoul metropolitan area and support water conservation projects in Yeoju. SK hynix will try to support the consumption of rice produced in Yeoju and to carry out various social contribution activities such as fostering chip professionals,” the industry ministry said.
“The signing of the agreement will put the Yongin Semiconductor Cluster, which will be Korea’s largest semiconductor industrial complex, on track,” Industry Minister Lee Chang-yang said. “We appreciate the efforts of related agencies that have made great efforts to resolve the delay in licensing.”
With the agreement, SK hynix is expected to begin construction of its plants in 2025 for completion in 2027. With more than 50 chip-related companies, the Yongin Semiconductor Cluster is expected to increase the country’s chip competiveness.