ANN/THE KOREA HERALD – The South Korean government has officially designated Yongin, Gyeonggi Province, as a national industrial complex for semiconductor manufacturing, aiming to establish the world’s largest chip production hub by 2030.
The announcement, made by the Ministry of Land, Infrastructure and Transport yesterday, comes three months earlier than initially planned, underscoring the government’s commitment to expediting the project.
By accelerating the site selection and designation process, authorities aim to begin construction by December 2026, four years ahead of the original June 2030 schedule. The initiative aligns with the government’s broader strategy to position South Korea as a global leader in the semiconductor industry.
The first fabrication plant within the complex is expected to begin operations in 2030, supported by significant infrastructure investments in roads, water supply, and power. Plans also include integrating the complex with nearby residential areas, creating a smart city centred on the semiconductor industry.
Yongin is already a strategic hub for chip manufacturing, with Samsung Electronics, the world’s largest memory chip-maker, operating several facilities in the area. SK hynix has also announced substantial investments to establish chip facilities in the region, further enhancing its industrial appeal.
During a signing ceremony at Samsung’s Giheung campus in Gyeonggi Province, the tech giant formalised agreements with project implementers and tenant companies. The government simultaneously unveiled a comprehensive development plan tailored to the Yongin chip cluster, reflecting a collaborative approach to driving innovation and economic growth in South Korea’s semiconductor sector.The Yongin semiconductor national industrial complex is a megasized national strategic project that will span 7.28 million square metres and host six large-scale fabs, three power plants and over 60 materials, parts and equipment partner companies.
Upon full completion, the project is expected to attract up to KRW360 trillion (USD246.4 billion) in private investments, create 1.6 million jobs and generate about KRW400 trillion in production output.
The government’s swift actions underscore the strategic importance of timing in the semiconductor industry, a concept that has been described as “subsidies in disguise”.
Streamlining the process is expected to enhance the quality of the industrial complex, while meeting tight global production timelines.
To address the relocation needs of residents and businesses, the government plans to establish a 370,000-square-metre resettlement site and a 500,000-square-metre dedicated industrial park for relocated companies.
Public rental housing will also be provided for tenant households unable to secure resettlement plots, while job opportunities at the complex will be prioritised for residents.
To facilitate reintegration, displaced residents opting for land-for-land compensation will receive land for neighbourhood facilities.
The government has also included plans to develop a residential town spanning 2.28 million square metres with 16,000 housing units, along with parks and other essential facilities to meet the region’s growing demand.
Additionally, transportation infrastructure will be expanded, including expressways and railways, to manage the anticipated rise in demand by 2030.
The first semiconductor fab in the industrial park is expected to start operation in 2030.
Land transactions between the Korea Land and Housing Corp and Samsung were formalised at yesterday’s event, following the 2022 framework agreement for the Yongin complex. The agreement detailed terms for land purchases, payment schedules and investment timelines, paving the way for tenant companies to begin their projects.
Land Minister Park Sang-woo hailed the early approval of the Yongin complex as a “monumental achievement”, emphasising its significance in Korea’s semiconductor history.
“We will spare no effort to ensure the swift development of the Yongin semiconductor national industrial complex, transforming it into the nation’s landmark industrial hubs,” Park said.
