SK Siltron Invests 1 Trillion KRW in Semiconductor Wafers... Mass Production Starting in 2024

Additional Factory Construction on 43,000㎡ Site in Gumi, Gyeongbuk

[Asia Economy Reporters Sunmi Park, Minjae Kwak] SK Siltron, a semiconductor wafer manufacturing company under SK Group, will invest approximately 1 trillion KRW in building a semiconductor silicon wafer factory. SK Siltron plans to construct an additional factory in Gumi, Gyeongbuk, starting foundational work in the first half of this year and commencing full-scale mass production from the first half of 2024. Along with the factory construction, about 1,000 new jobs will be created.

According to SK Siltron on the 16th, the semiconductor silicon wafers with increased production are the 12-inch (300mm) size products, which are currently in short supply. SK Siltron has not disclosed the increased production volume due to confidentiality agreements with its clients. The Gumi factory site covers approximately 43,000㎡. SK Siltron currently operates Gumi Plants 1, 2, and 3 (with a total site area of 240,000㎡) as well as the Cheongju plant.

SK Siltron explained that to ensure stable supply of wafers ordered by semiconductor companies and to secure business competitiveness, it plans to invest a total of 1.0495 trillion KRW over three years to expand a state-of-the-art semiconductor wafer factory in the Gumi National Industrial Complex 3rd Industrial Zone, where its headquarters is located.

The expansion of SK Siltron’s semiconductor silicon wafer factory is significant as it takes place during a period of rapidly increasing semiconductor demand following the COVID-19 pandemic. Notably, this investment is the largest since the governance structure changed from LG Siltron to SK Siltron in 2017.

SK Siltron has continuously received requests from clients such as Samsung Electronics, SK Hynix, Intel, and TSMC to increase wafer production. Following the severe shortage of automotive semiconductors starting in the fourth quarter of 2020 and the explosive growth in demand for various IT devices due to increased non-face-to-face activities, production volumes at semiconductor manufacturers have surged sharply.

Semiconductor wafers are the core material of semiconductor integrated circuits. They are circular discs essential in semiconductor manufacturing processes. Since all processes occur on the wafer, chip production is practically impossible without this material. Currently, five companies worldwide supply over 90% of the semiconductor silicon wafer market. SK Siltron is the only company producing wafers domestically in Korea.

Through this investment, SK Siltron aims to become the global number one wafer company. According to industry sources, SK Siltron currently ranks third in the global market for 300mm silicon wafers. SK Siltron stated, “Through this facility investment, we will increase semiconductor wafer production and innovate technology through technical collaboration with global semiconductor companies,” adding, “We will establish high-quality wafer manufacturing capabilities and leap forward as a leader in the global wafer industry.”

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