South Korea prepares to build the world's largest chip manufacturing center

The South Korean government has designated a chip cluster in Yongin, Gyeonggi Province, as a national industrial complex with the aim of creating the world's largest chip manufacturing hub by 2030.

On December 26, the South Korean Ministry of Land, Infrastructure and Transport (MOLIT) announced that the government had designated a chip cluster in Yongin, Gyeonggi Province, as a national industrial complex, three months ahead of schedule, with the aim of creating the world's largest chip manufacturing hub by 2030.

The shortened time for site selection and industrial park designation reflects the Korean government’s commitment to expedite administrative procedures and ensure construction starts by December 2026, four years earlier than the original June 2030 timeline.

Alongside the first chip manufacturing plant becoming operational in 2030, critical infrastructure, including roads, water supply, and electricity, will be expanded.

The Korean government also aims to integrate the industrial complex with surrounding residential areas, turning the area into an industry-centric smart city.

Samsung Electronics, the world's largest memory chip manufacturer, currently operates several chip manufacturing facilities in Yongin and the surrounding area, making the region a strategic location for the new complex.

SK hynix, a competitor in the same city, has also announced plans to invest in building chip manufacturing facilities there.

During a signing ceremony at Samsung's Giheung facility in Gyeonggi Province on December 26th, the tech giant officially signed agreements with project implementers and leasing companies.

The South Korean government also announced a detailed development plan for the Yongin National Chip Industrial Complex.

The Yongin National Semiconductor Industrial Complex is a large-scale national strategic project, spanning an area of ​​7.28 million ^square meters and comprising six large-scale manufacturing plants, three power plants, and more than 60 partner companies supplying materials, parts, and equipment.

When fully completed, the project is expected to attract up to 360 trillion won (US$246.4 billion) in private investment, create 1.6 million jobs, and generate approximately 400 trillion won in output.

The swift actions of the South Korean government underscore the strategic importance of timing in the semiconductor industry, a concept described as "subsidization in disguise."

Streamlining this process is expected to improve the quality of the industrial complex while meeting tight global production deadlines.

To address the relocation needs of residents and businesses, the South Korean government plans to establish a 370,000 ^m² resettlement area and a 500,000 ^m² dedicated industrial zone for the relocated companies.

Public rental housing will also be provided for households unable to secure resettlement plots, while employment opportunities within the complex will be prioritized for residents.

To facilitate reintegration, displaced residents who choose the land-for-land compensation option will receive land for neighborhood amenities.

The South Korean government has also included in its development plan a 2.28 million square meter residential town with 16,000 housing units, along with parks and other essential amenities to meet the growing needs of the area.

In addition, transportation infrastructure will be expanded, including highways and railways, to meet the projected increase in demand by 2030.

The first semiconductor manufacturing plant in this industrial complex is expected to begin operations in 2030. Land transactions between Korea Land and Housing Corp. and Samsung were formalized at an event on December 26, following a 2022 framework agreement for the Yongin complex.

The agreement details the terms of land purchase, payment schedule, and investment deadlines, paving the way for leasing companies to begin their projects.

MOLIT Minister Park Sang Woo hailed the early approval of the Yongin complex as a "great achievement," emphasizing its importance in South Korea's semiconductor history.

Minister Park stated, "We will do our utmost to ensure the rapid development of the Yongin National Semiconductor Industrial Complex, transforming it into a landmark industrial center for the nation."

Source: https://nhandan.vn/han-quoc-chuan-bi-xay-dung-trung-tam-san-xuat-chip-lon-nhat-the-gioi-post852872.html