Lee Seok-hee, President of SK Hynix, "Yongin Fab to Start Construction Within First Half... No Impact from Ukraine"

"Alternatives Mentioned on Plan A, B, C Levels... No Major Impact on Fab Opening"
US R&D Center to Complete Around 2026, Memory Demand Expected to Remain Strong

Lee Seok-hee, President of SK Hynix [Photo by Yonhap News]

[Asia Economy Reporter Lee Hye-young] Lee Seok-hee, CEO of SK Hynix, said regarding the establishment of the semiconductor cluster in Yongin, "We expect to be able to sell the land within the first half of this year."

On the 16th, after attending the 'Semiconductor Investment Activation Meeting' hosted by the Ministry of Trade, Industry and Energy at Lotte Hotel in Sogong-dong, Seoul, Lee made this remark to reporters.

The Yongin semiconductor cluster faces concerns about construction delays due to land compensation issues. At last month's SK Hynix earnings conference call, No Jong-won, Head of Business, mentioned that they are reviewing 'alternatives' regarding this matter.

In response, Lee clarified, "The mention of alternatives was only in the context of Plan A, B, and C; the Yongin cluster is by no means in a serious problem." He added, "There is no major obstacle to the opening of the first fab."

Regarding the R&D center being planned in the United States, he said, "It is currently in the design phase, and completion is expected in 2026."

On memory semiconductor price fluctuations, he expressed confidence, saying, "From the customers' demand perspective, business remains solid this year as well." Lee evaluated Intel's acquisition of Tower Semiconductor as "a result of Intel's concerns while trying to expand its foundry side."

He also forecasted that there would be no major issues due to proactive measures against raw material supply concerns arising from the escalating military tensions between Russia and Ukraine. Domestic companies such as Samsung Electronics and SK Hynix import over 90% of the neon required for semiconductor production from Ukraine and 35% of palladium from Russia.

Lee stated, "We have made preparations on our own, so we are not overly worried," adding, "We have secured a large inventory of raw materials such as neon and palladium."

[Image source=Yonhap News]

Meanwhile, the semiconductor investment activation meeting was held to explore ways for the government and industry to strengthen the semiconductor industry's supply chain and innovate competitiveness through investment activation and support measures.

Attendees included Moon Seung-wook, Minister of Trade, Industry and Energy; Lee Jung-bae, Chairman of the Korea Semiconductor Industry Association (President of Samsung Electronics); CEO Lee Seok-hee; representatives from memory, foundry, and fabless companies; and 14 companies related to materials, parts, and equipment.

The semiconductor industry announced plans to invest 56 trillion won domestically this year and requested the government for workforce development, tax benefits, and regulatory easing.

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