Questions are mounting over whether the Yongin semiconductor cluster, the world's largest chip manufacturing complex that Samsung Electronics and SK hynix will build in Yongin, Gyeonggi Province, can start operations as scheduled. The Yongin semiconductor cluster will need power equivalent to as many as 16 nuclear reactors, but there is still no clear solution for how to secure the transmission facilities to bring in electricity from outside.
Amid this, the government's move to create a semiconductor industrial complex in the southwest has further complicated the situation. The government is actively considering building nuclear power plants and small modular reactors (SMRs), but has not presented a concrete solution for transmission networks. Some worry that establishing a southwest semiconductor complex could make it even harder to send electricity to the Yongin semiconductor cluster.
According to the semiconductor industry on the 14th, SK hynix, which will move into the general industrial complex of the Yongin semiconductor cluster, broke ground on its first fabrication plant (fab) in Feb. 2024 and is proceeding with construction to begin operations in Feb. next year. The national industrial complex where Samsung Electronics will move in is also preparing to break ground on its first fab in 2028.
The Yongin semiconductor cluster consists of the Yongin Wonsam-myeon semiconductor cluster led by SK hynix and an advanced system semiconductor industrial complex that Samsung Electronics is creating in the areas of Idong-eup and Namsa-eup. A total of 10 semiconductor fabs will be built, including four by SK hynix and six by Samsung Electronics.
By the time construction of all fabs is complete, more than 10 GW (gigawatts) of power will likely be needed. In a report published last year, the National Assembly Research Service projected the Yongin semiconductor cluster's power demand at up to 16 GW. Given that a typical nuclear power plant has a capacity of 1 GW, it means a massive amount of electricity equivalent to as many as 16 nuclear reactors will be necessary.
According to the 11th Basic Plan for Long-term Electricity Supply and Demand announced in Feb. last year, the government decided to secure 3 GW of power by building a liquefied natural gas (LNG) cogeneration plant and other facilities inside the Yongin semiconductor cluster to meet initial demand. Although it will still take time until all fabs are completed, at least 7 GW of additional power will have to be sourced from nuclear, thermal, and renewable energy facilities nationwide.
The problem is that the transmission network to bring vast amounts of power from various regions to Yongin has not been secured, and implementation plans remain unclear.
The government and the Korea Electric Power Corporation announced in July 2024 that they would build 1,153 kilometers of onshore 345 kV (kilovolt) transmission lines by 2036 to ensure a stable power supply for the Yongin semiconductor cluster. This corresponds to seven main route sections, or 14 circuits.
However, many in the energy industry say it will be difficult in practice for transmission line construction to proceed smoothly as initially planned. They cite the "dual permitting structure," under which even if the government approves the power plan, licensing authority lies with local governments. In short, even if the government finalizes the plan, there is a high possibility that local governments could reject or delay permits, slowing transmission line construction.
In fact, according to the energy industry, the government previously expanded transmission networks to build semiconductor clusters in southern Gyeonggi, including Samsung Electronics' Pyeongtaek campus, but it took more than 10 years to complete major facilities. The 24-kilometer, 345 kV line connecting Godeok in Pyeongtaek and Seo Anseong took 10 years from planning to completion; the 34-kilometer Buktangjin–Godeok section in South Chungcheong took 11 years; and the 35-kilometer Buktangjin–Shintangjeong section took about 21 years.
During construction of the Buktangjin–Godeok transmission line, Dangjin residents and the city of Dangjin strongly opposed the project, citing concerns about electromagnetic fields and landscape damage. KEPCO ultimately agreed to bury the lines underground instead of building pylons. In the Seo Anseong–Godeok section, as resident opposition intensified, Samsung Electronics shouldered about 75 billion won in additional construction costs to bury the lines. Construction was delayed in the process.
An energy industry official said, "Even transmission lines under 100 kilometers have taken around 10 to 20 years to complete, so building 1,153 kilometers across seven sections within the next 10 years is close to impossible in practical terms."
Indeed, residents in areas slated for the lines are fiercely opposing new transmission construction. Early this year, hundreds of residents and civic group members in the Chungcheong region held rallies against the construction of ultra-high-voltage transmission lines, and opposition grew in North Jeolla, led by political circles. In the June 3 local elections last month, blocking transmission line construction emerged as a campaign pledge.
In this situation, the government's announcement on the 29th via the "National briefing on Korea's three megaprojects for a great leap" to create a semiconductor manufacturing complex in the southwest, including the Jeonnam-Gwangju Integrated Metropolitan City, with a total investment of 800 trillion won, has emerged as another variable for the Yongin semiconductor cluster's power supply.
The government made clear it will proceed with the two projects separately and simultaneously, rather than finishing the Yongin semiconductor cluster first and then starting investment in the southwest. In that case, power generated by renewable energy facilities concentrated in the Honam region and the Hanbit nuclear power plant in Yeonggwang, South Jeolla, is likely to be supplied to the southwest semiconductor facilities as well.
The Yongin semiconductor cluster thus faces a situation where it must secure new power sources in addition to solving the transmission network problem.
Presidential Chief of Staff Kang Hoon-sik said at the "public-private joint review meeting on megaprojects" held on the 6th, "We decided to accelerate the overall schedule as much as possible, from land compensation to power and water supply, so that investment in the 10 fabs initially planned for the Yongin semiconductor cluster can move forward quickly." However, a detailed schedule to discuss specific power supply measures, such as expanding transmission networks, has not yet been released.
Following the recent announcement of plans to build a southwest semiconductor industrial complex, the government unveiled a plan to expand power supply by building additional nuclear plants. Minister Kim Seong-hwan of the Ministry of Climate, Energy and Environment said at the National Fiscal Strategy Meeting presided over by President Lee Jae-myung on the 13th, "To respond to the surge in power demand and stabilize baseload generation, we will decide whether to introduce new nuclear plants and small modular reactors (SMRs) and reflect the decision in the 12th Basic Plan for Long-term Electricity Supply and Demand."
After the announcement of the three megaprojects, including the creation of the southwest semiconductor complex, the government has floated building additional nuclear plants on top of two large reactors and one SMR being pursued under the 11th basic plan. However, even at the meeting that day, there was no plan to expand existing transmission networks, which are expected to face worse bottlenecks due to construction of the southwest complex.
An energy industry official said, "Some in academia and local governments increasingly predict that the Yongin semiconductor cluster will be difficult to build as originally planned due to power and water supply issues," adding, "No matter how much discussion there is about building new generation facilities like nuclear plants, it is pointless without a way to transmit the electricity."