When will the shovel open at Yongin Semiconductor Industrial Complex... SK hynix nervous

The time has come when we cannot live without semiconductors. Semiconductors are now the lifeblood and power of society and industry. You can move and connect everything, but you can also stop and destroy everything. Semiconductors, which transformed our labor-intensive economy in the 1960s and 1970s into high-tech and high-value-added industries, are now entering a new era amidst technological supremacy and the Fourth Industrial Revolution. With the inauguration of the new government, strengthening the competitiveness of the domestic semiconductor industry and expanding the ecosystem has emerged as an urgent task more than ever. In celebration of the 22nd anniversary of the founding of GDnet Korea, 'Semiconductor is the Future' series is serialized in three parts. We would like to take a close look at the current state of the Korean semiconductor industry, which is evaluated as an economic and security asset, beyond the leading edge of our export industry, and seek directions for what to prepare and how to design the future. [Editor's Note]

< Order of posting>

Part 1: The World is a Semiconductor War

Part 2: The Korean semiconductor myth continues

Part 3: Hear from the Experts

The groundbreaking ceremony for the Yongin Semiconductor Industrial Complex, which was supposed to open the first shovel on the 14th, was canceled.

Yongin General Industrial Complex is building a next-generation memory semiconductor production base with a size of 4.15 million square meters (about 1.26 million pyeong) in Dokseong, Godang, and Jukneung-ri, Wonsam-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do. It has been three years since the Ministry of Trade, Industry and Energy announced the 2019 plan.

S. SK Hynix has decided to invest 120 trillion won in building four semiconductor factories here. The goal is to start construction of the first phase in early 2025 and start operation in 2027. SK Hynix confessed that it was having difficulties in securing land. In case the Yongin site cannot be secured in a timely manner, other measures are being considered.

Semiconductor factory that cannot be built without land or water

The start of the Yongin semiconductor industrial complex was delayed by more than a year in the process of persuasion and approval of residents. Because of the land compensation, the Yongin site remains as agricultural land.

An official from Yongin General Industrial Complex said, The groundbreaking ceremony that was supposed to be held on the 14th was canceled. It rained a lot during the rainy season, and the land compensation issue was not 100% accepted, and there is no promise as to when the construction will start. He added, Not in July.

An official from the Ministry of Trade, Industry and Energy also explained, The groundbreaking ceremony for the Yongin Semiconductor Industrial Complex, which was reviewed for the 14th, has been delayed. However, he drew a line saying, I don’t know when.

President Yoon Seok-yeol was considering whether to attend the groundbreaking ceremony for the Yongin semiconductor industrial complex on the 14th. President Yoon has emphasized semiconductors since his days as a presidential candidate. In May, he met US President Joe Biden, who visited South Korea for the Korea-US summit, at a Samsung Electronics semiconductor plant in Pyeongtaek, Gyeonggi Province. The Prime Minister and the Minister of Trade, Industry and Energy also visited the SK Hynix headquarters in Icheon-si, Gyeonggi-do several times to promise support.

SK hynix looking for self-rescue elsewhere

The light on the instep of SK Hynix went out. Earlier this year, Jong-won Roh, president of SK Hynix's business division, said immediately after announcing last year's results, If the first plant in Yongin is delayed considerably, we will find a way to secure another space, and we are actually thinking about it. However, he said, It does not mean that we are thinking of other land than Yongin, he said.

President Roh said, We have to secure a site in Yongin and build a new factory as soon as possible. President Roh emphasized, Special purpose companies (SPCs) do the work of creating industrial complex sites and purchasing land.

In response to the opinion that the size of the Icheon M16 clean room seems insufficient for the next 4 to 5 years, President Roh said, The M16 (completed early last year) will ramp up faster than planned. work) and It is true that more space is needed.

In addition to SK Hynix, about 50 materials, parts and equipment companies have decided to move into the Yongin semiconductor industrial complex.

Government repeating the same promise for years

The government expected to create 31,000 jobs, 513 trillion won in production effect, and 188 trillion won in added value at the Yongin semiconductor industrial complex. On the 12th, the Ministry of Trade, Industry and Energy reported to President Yoon a new government work plan that would help R&D and production by establishing a semiconductor manufacturing base comparable to that of competing countries, and also provide financial and tax benefits.

Prior to this, the government repeated that it would fully support investment in semiconductor companies whenever it met with the industry. The government evaluated that if semiconductor companies make large investments, jobs will increase and supply chains will be stable. He did not leave out the talk of helping the semiconductor-specialized complex to easily use electricity and water, which are essential for making semiconductors. Relevant ministries and local governments also announced that they would set up a semiconductor investment support organization to loosen regulations.

Major countries compete with semiconductors as weapons. In June of last year, the U.S. Senate passed the U.S. Innovation and Competition Act (USICA). They are pouring out $250 billion (about 300 trillion won) of semiconductors in the United States. China has set a policy to procure 70% of the semiconductors used in China domestically by 2025. The European Union (EU) enacted the Integrated Circuits Act (Semiconductor Act) to invest $48 billion. In Japan, if a new semiconductor plant is built or expanded in Japan, the government has to wait for half of the investment.

Meanwhile, SK hynix has been caught up in regulations in the past and has not been able to immediately execute its investment. During the participatory government in the mid-2000s, an additional investment was attempted at the headquarters in Icheon, but was blocked by environmental regulations. As a new factory was built in the Cheongju factory around the world, restrictions on the Icheon factory were lifted. In metropolitan areas, regulations are stricter than in non-metropolitan areas.