Final Approval Granted for 'Yongin Semiconductor Cluster' Industrial Complex Plan... Construction to Begin Within the Year

Approval and Notification of Yongin Semiconductor Cluster Industrial Complex Plan Complete Administrative Procedures

[Sejong=Asia Economy Reporter Kwon Haeyoung] With the final approval of the Yongin Semiconductor Cluster Industrial Complex Plan, the foundation for construction within this year has been established.

The Ministry of Trade, Industry and Energy announced on the 29th that with the approval and notification of the Yongin Semiconductor Cluster Industrial Complex Plan, the administrative procedures for the establishment of the industrial complex have been completed.

Since the special allocation of metropolitan area quotas in March 2019, the industrial complex designation plan notification, completion of environmental impact assessment consultations, Gyeonggi-do industrial complex plan review, and Ministry of Land, Infrastructure and Transport metropolitan area maintenance committee review have been completed, resulting in the approval of the industrial complex plan after two years.

The Ministry of Industry explained that the approval of the Yongin Semiconductor Cluster Industrial Complex Plan this time signifies ▲ the completion of administrative procedures at the central government and local government levels related to industrial complex establishment ▲ strengthening of the domestic semiconductor supply chain amid major countries such as the US and China enhancing their domestic semiconductor production capabilities ▲ the launch of an integrated complex expected to activate collaboration between demand companies and small and medium-sized materials, parts, and equipment (SoBuJang) companies.

The Yongin Semiconductor Cluster Development Project is a representative private investment project in the semiconductor industry with a total project cost of 120 trillion won. Construction will begin this year, and the first phase fab is scheduled to be completed in early 2025. Upon final completion, it is expected to secure a maximum monthly production capacity of 800,000 wafers through four newly established fabs, generate 513 trillion won in induced production, and 188 trillion won in added value, creating approximately 17,000 high value-added jobs.

The Ministry of Industry formed a government joint investment support team led by the Director-General of Industrial Policy in 2019, eliciting cooperation from related ministries, local governments, and public institutions responsible for infrastructure development. As a result, timely support was provided for securing the first batch of industrial water, negotiating the construction of two power transmission lines, and permits such as farmland and mountain land conversion. Last month, the Yongin Semiconductor Cluster was designated as a 'SoBuJang Specialized Complex,' establishing an institutional basis for customized support to foster a global-level cluster.

Kang Kyungseong, Director-General of Industrial Policy at the Ministry of Industry, said, "In the semiconductor supply shortage situation caused by COVID-19, large-scale private investment in the domestic semiconductor industry can send a positive signal for stabilizing the global supply chain," adding, "Since the semiconductor industry is a pillar of our economy and exports, we will spare no additional government-wide support to resolve difficulties arising during the investment process to ensure there are no delays in the industrial complex construction schedule this year."

This content was produced with the assistance of AI translation services.