According to BusinessKorea, in order to strengthen the strength of Korean semiconductors, the Korean government is launching a semiconductor manufacturing cluster plan, which will be implemented by four large semiconductor manufacturers and about 50 electronic components and equipment manufacturers. It is estimated that the plan will invest about 120 trillion won (about 106.3 billion US dollars) in 10 years.

The report pointed out that the Korean government has also included this semiconductor manufacturing cluster plan when it proposed the relevant business plan for 2019. Therefore, since 2019, the Korean government will make details of the relevant plans, and the follow-up will be implemented in stages according to the plan. Among them, SK hynix will build a new semiconductor factory in this semiconductor manufacturing cluster plan, and the new semiconductor factory will be located in Yongin, Gyeonggi-do, South Korea, and will be adjacent to Samsung’s semiconductor factory in Gyeonggi-do.

South Korean officials said that if SK hynix decided to build a new manufacturing plant in the semiconductor manufacturing cluster plan, it would be able to integrate nearby semiconductor parts and equipment suppliers and strengthen its overall semiconductor manufacturing ecosystem. In this regard, SK Hynix said that it has not confirmed that Gyeonggi-do Yongin is the location of the new manufacturing plant and is continuing discussions with the government, as it may also be located in places like Icheon and Cheongju.

By 2025, when the SK hynix new semiconductor plant is completed, it will help build the entire semiconductor manufacturing ecosystem and expect to complete the entire semiconductor manufacturing cluster program between 2029 and 2030.