Samsung Electronics is accelerating the creation of the "Yongin advanced system semiconductor national industrial complex," which it is pushing in Idong-eup and Namsa-eup in Yongin, Gyeonggi Province. Samsung Electronics said it signed a land purchase contract on the 19th with Korea Land & Housing Corporation (LH) for the creation of the industrial complex. The Yongin advanced system semiconductor national industrial complex is a mega-project in which Samsung Electronics will build six system semiconductor production facilities (fabs) on a 7,773,656-square-meter (about 2.35 million-pyeong) site across Idong-eup and Namsa-eup.
According to the industry on the 29th, LH will soon place orders for construction to create the industrial complex and begin work in the second half of next year. Samsung Electronics has said it plans to invest 360 trillion won here. However, the industry expects the investment size to grow further as construction of production facilities proceeds. In addition to Samsung Electronics production lines, more than 80 semiconductor materials, parts, equipment, and design corporations, as well as research institutions, will also move in.
To that end, LH began compensation talks on the 22nd with land owners within the planned industrial complex site regarding land and obstacles (buildings, structures, trees, etc.). As of the 26th, the compensation procedure was reportedly 14.4% complete. Starting with the first phase of land compensation now underway, LH plans to speed up the creation of the industrial complex by sequentially providing related compensation as soon as surveys of obstacles (buildings, business rights, etc.) are completed.
Regarding this compensation process, the semiconductor industry says "swift execution" is needed. That is because production lines within the national industrial complex must be operated in a timely manner to meet soaring semiconductor demand in the era of artificial intelligence (AI). After the national industrial complex plan was announced in Mar. 2023 and administrative procedures were carried out, the Ministry of Land, Infrastructure and Transport gave final approval for the project plan in Dec. last year, and LH announced the compensation plan in June this year. It has since proceeded with loss-compensation procedures such as appraisal and calculation of compensation amounts.
Meanwhile, Yongin City said Mayor Lee Sang-il met with Koo Yun-cheol, Deputy Prime Minister for the economy and Minister of Economy and Finance, on the 28th and requested, "Please have the government, including the Ministry of Economy and Finance, actively support the smooth progress of the mega semiconductor project and transportation infrastructure construction underway in Yongin."