Samsung Electronics is pushing ahead with a plan to advance the operation timing of its first factory (fab) in the Yongin Semiconductor Cluster by one to two years compared to the original plan. Attention is focused on whether the creation of the Yongin Semiconductor National Industrial Complex, where the Samsung Electronics fab will be located, will gain momentum.
According to the industry on July 12, Samsung Electronics is pushing ahead with its business by setting the operation target of the first fab among a total of six semiconductor production factories to be located in the Yongin National Industrial Complex to 2029.
The initial operation timing of the Yongin semiconductor fab mentioned so far was around 2030 to 2031, but it has become one to two years faster.
As the government promotes the early creation of the Yongin National Industrial Complex, it is analyzed that Samsung Electronics intends to advance the overall business schedule accordingly. This schedule is known to have been discussed also at the 'Mega Project Public-Private Joint Review Meeting' presided over by the President on June 6.
To operate the first fab in 2029, it is projected that site preparation work must start in the second half of this year at the latest. Construction of the fab must begin next year to meet the operation timing.
Usually, it takes about two years to build a semiconductor fab, but prior to that, procedures such as site preparation, land and obstacle compensation, eminent domain adjudication, and contractor selection must proceed without a hitch.
As the government has expressed its commitment to shortening the creation period of the Yongin National Industrial Complex, the industry believes that the supply schedule for core infrastructure such as electricity and water can also be accelerated.
When the Samsung Electronics Yongin fab goes into full operation, semiconductor production capacity is projected to expand further. The creation of the related materials, components, and equipment ecosystem can also be accelerated. Major materials, components, and equipment companies are known to be preparing to establish bases in Yongin.
An industry official said, “If the fab operation timing is advanced, not only can we respond more quickly to the soaring demand for artificial intelligence (AI) semiconductors, but the effect of creating the domestic semiconductor ecosystem will also appear faster than expected.”
Samsung Electronics announced a plan to invest 2,030 trillion KRW in the Pyeongtaek and Yongin semiconductor clusters and 400 trillion KRW in the Honam region in the mega project announcement at the end of last month. Here, Samsung Electronics previously revealed that it plans to shorten the completion timing of the Yongin Semiconductor Cluster from 2047 to 2040 based on the final fab.
