South Korea has granted the approval to SK Hynix for its 120 trillion-won or $106 billion project to build a semiconductor complex.
South Korea’s No 2 chipmaker — after Samsung — has completed administrative procedures to go ahead with the project to build the complex in Yongin, about 50 kms south of Seoul, according to the Ministry of Trade, Industry and Energy.
The 4.15 million-square-meter industrial cluster will house four new semiconductor fabrication plants.
Some 50 subcontractors and suppliers of the chipmaker will be relocated to the zone as well. When completed, the cluster will boast a monthly production capacity of 800,000 sheets, reports Yonhap news agency.
The groundbreaking for the new semiconductor plant is expected to take place in the fourth quarter of this year. The first fabrication plant is predicted to be completed in 2025.
South Korea said the latest investment is expected to ease supply shortages in the global market as well. South Korea’s exports of chips increased 5.6 percent to $99.1 billion in 2020.
“As the chip industry is the key pillar of the country’s exports, the government will spare no efforts to solve any potential problems throughout the project, so that the construction can start this year as scheduled,” the ministry added.