SK Hynix is poised to make significant strides in semiconductor manufacturing as the company has received building approval for its first production facility within the Yongin Semiconductor Cluster, located in the city of Yongin, South Korea. Construction for this facility is set to begin next month, with the aim of starting production by the first half of 2027.
The scale of the project is considerable. The approved building permit encompasses approximately 1.975 million square meters of land with a total floor area of 142,468 square meters. This includes one main manufacturing fab (FAB) building of 57,000 square meters, one support facility with 20 floors, and 17 additional constructions such as warehouses and wastewater treatment facilities.
The local government has dedicated efforts to facilitate the construction process. Last April, Yongin City and SK Hynix signed a memorandum of agreement focused on the early commencement of production line construction and the stimulation of the local construction industry. Following this, the city established the 'Building Permit Task Force' to oversee and streamline the approval processes for the project.
SK Hynix's commitment to regional collaboration is evident. The company plans to utilize local construction firms and resources significantly during the massive building project, which estimates the involvement of up to three million personnel over the two-year construction period. The investment proposal submitted by SK Hynix aims to mobilize 450 billion Korean Won (approximately 400 million USD) for the procurement of local resources.
An informational session for local construction equipment suppliers was held recently, led by SK Ecorim, the construction company tasked with managing the project's development. This session provided details about the project timeline, required equipment, and criteria for local businesses to participate.
City Mayor Lee Sang-il expressed optimism about the economic benefits the semiconductor cluster will bring to Yongin. He noted, "The first production line at the Yongin Semiconductor Cluster will be operational by the first half of 2027 as planned. We will provide all necessary administrative support to facilitate this, including efforts to address any traffic disruptions caused by construction to keep our citizens safe."
Local industry stakeholders and representatives from SK Hynix have also highlighted the positive ripple effects of the facility's construction. Aside from direct job creation within SK Hynix itself, the project is likely to bolster the local economy as workers will spend on meals, accommodations, and leisure, benefitting numerous businesses around Yongin.
Such developments are increasingly relevant as South Korea positions itself as a global leader in semiconductor production, aiming to offset supply chain vulnerabilities exposed by the pandemic and geopolitical tensions. These strategic investments are not just about building facilities but ensuring long-term sustainability and community integration.
With the groundbreaking on this new facility on the horizon, all eyes will be on Yongin to see how it becomes the heart of advanced semiconductor manufacturing.