Government to Announce Semiconductor Support Package
A groundbreaking ceremony will be held next month for the Yongin Semiconductor Cluster, which will become SK Hynix’s next-generation memory semiconductor production base. President Yoon Suk-yeol is expected to personally attend the event and announce the government’s comprehensive support strategy for the Korean semiconductor industry.
The Korean government, Gyeonggi Province, Yongin City and SK Hynix recently agreed to hold a groundbreaking ceremony for the semiconductor cluster in Yongin, Gyeonggi Province on July 14.
The project involves building a high-tech semiconductor factory complex on an area of 4.15 million square meters in Wonsam-myeon, Yongin. SK Hynix plans to invest 120 trillion won to build four memory semiconductor fabs in the area. About 50 materials, parts and equipment suppliers will also settle around the fabs.
The government is expected to announce a comprehensive semiconductor support strategy at the groundbreaking ceremony, reaffirming its will to support the semiconductor industry at the national level and encourage corporate investment in the semiconductor sector.
The government's support package is expected to include measures to foster semiconductor engineers, ease regulations, provide tax benefits, and support materials, parts, and equipment companies to strengthen the nation's semiconductor ecosystem.
The cluster is expected to boost SK Hynix’s competitiveness. SK Group announced in May that it would invest 142 trillion won in the semiconductor sector over the next five years. This is more than half of the group’s entire investment plan of 247 trillion won during the period. When the production lines are completed, they will be able to process up to 800,000 wafers per month.