Chey Tae-won, chairman of SK Group, visited the Yongin Semiconductor Cluster construction site in Yongin City, Gyeonggi Province, on Sept. 15 and described it as “the most strategic and planned project in SK hynix’s history.” SK hynix had previously decided to invest 120 trillion won in 2019 to build a semiconductor manufacturing facility in Yongin.
SK hynix explained that Chairman Chey’s visit was aimed at inspecting the construction progress, as development of the Yongin Cluster began in earnest this June, and to encourage the members involved.
Chairman Chey also reiterated SK Group’s commitment to RE100, a declaration to source 100% of a company’s electricity needs from renewable energy. He emphasized, “Interest in green energy is growing, and if we fail to respond, we won’t be able to sell our products. Unlike the past, we now need to consider and integrate such factors.”
SK hynix joined RE100 in 2020 with a goal to achieve 100% renewable energy usage by 2050. According to SK hynix’s 2023 sustainability report, the company procured 29.6% of the electricity for its global operations from renewable sources last year. While overseas operations in cities like Wuxi and Chongqing in China and San Jose in the U.S. transitioned to 100% renewable energy in 2022, domestic operations have lagged behind. Semiconductor factories require 24-hour electricity, making the need for a significant renewable energy supply in Korea especially pertinent for the new Yongin plant to maintain RE100. This raises concerns about the power supply plan for the Yongin Semiconductor Cluster.
Samsung Electronics is also investing a total of 300 trillion won to establish more than five semiconductor factories in the Yongin Semiconductor Cluster by 2042. The electricity needs are projected to rise from 0.4 GW in 2029 to 7 GW in 2042 and exceed 10 GW by 2050.
The government plans to construct six Liquid Natural Gas (LNG) power plants to supply electricity for the Yongin Semiconductor Cluster. According to the 10th basic power supply plan, coal-fired power plants scheduled for closure will be converted to LNG power plants and their capacity will be allocated to Yongin. Additionally, transmission networks will be built to draw nuclear power from Gyeongbuk and renewable energy from Honam.
On a related note, Greenpeace, in its evaluation report titled “Samsung Electronics’ Environmental Management Strategy One Year Review” released on Sept. 14 argued that Samsung Electronics’ renewable energy electricity ratio was not 20% in 2021 but merely 6%. They also suggested that the 2022 figure could be less than 10%. This assessment was based on applying weightings of 1 for self-generation and PPA, 0.3 for REC purchases, and 0.1 for green tariff schemes. Compared to global competitors, the difference is stark. Both Apple and Samsung Electronics achieved RE100 in the U.S. in 2022. However, while Apple’s utilization of effective systems stood at 77% (PPA 62.6% and self-installation 14.6%), Samsung’s reliance on less effective mechanisms was 94%, with REC purchases accounting for 92.2%.