SK Hynix's $90B Semiconductor Plant Plan Supported by Govt.

SK Hynix, the world's second-largest memory chip manufacturer, has announced plans to invest over 120 trillion South Korean won (approximately 907 billion USD) by 2046 in constructing the world's largest chip production facility in its Yongin semiconductor cluster. The commitment came during a recent inspection by South Korean Trade Minister Ahn Dae-geun, who emphasized the government's active support in achieving a target of 120 billion USD in semiconductor exports annually.

According to reports from the Korean Economic Daily, SK Hynix revealed that construction of the first of four factories will commence in March next year at the site. This facility is set to become the world's largest three-story wafer plant. Despite initial delays due to permit issues, SK Hynix has made progress in site development, thanks to agreements reached with central and local governments as well as businesses in 2022.

During the inspection, Minister Ahn Dae-geun reiterated the government's commitment to supporting the development of domestic semiconductor industry-related infrastructure. This support aims to bolster companies' technological capabilities, expand exports, and strengthen key sectors such as raw materials, components, equipment, chip design, and sales.

The South Korean Ministry of Trade has initiated a task force focusing on power supply for SK Hynix's semiconductor cluster. Additionally, plans are underway to announce comprehensive support measures for seven advanced and strategic industries, including the SK Hynix semiconductor cluster.

By the end of June, the South Korean government will unveil its strategy to accelerate the export of artificial intelligence (AI) chips and strengthen semiconductor facilities.

Minister Ahn Dae-geun highlighted the collaborative efforts among various ministries to ensure South Korean companies remain competitive in the global semiconductor manufacturing sector. He emphasized active support for the manufacture of high-bandwidth memory (HBM) chips, with the goal of surpassing 120 billion USD in semiconductor exports this year.