Samsung Electronics, SK Hynix, Korea Electric Power Corp., Korea Water Resources Corp. (K-water), Korea Land &Housing Corp. and other public organizations held a ceremony to launch a semiconductor cluster infrastructure project in Yongin at Korea Semiconductor Industry Association on Nov. 27.
They also signed deals to implement projects related to the smooth supply of electricity and water.
The deals complement plans to build infrastructure for the creation of the Yongin semiconductor cluster, such as the establishing of a detailed power supply plan and the pushing of an integrated water supply project, which were announced in June by the government.
The moves are part of the government’s steps to offer a package of support on the semiconductor ecosystem.
The agreements are designed to help the government, public organizations, companies and other related bodies build infrastructure as soon as possible, and guarantee the smooth operation of production facilities in the Yongin semiconductor cluster.
The facilities are expected to be put into service in 2027, and expedite the private sector’s expected investments worth 600 trillion won into the Yongin semiconductor cluster.
Deal on power supply in Yongin Semiconductor Cluster
The Yongin Advanced System Semiconductor Industrial Complex and the Yongin Semiconductor Cluster Industrial Complex are expected to be supplied with a combined 10GW or more of electricity by 2053, when the private sector completes its investments there.
In February 2024, the government formed a task force consisting of organizations related to the power supply to the national advanced strategy specialized industrial complex.
The government has held consultations with KEPCO and companies on a detailed power supply plan and cost-sharing.
In the case of the Yongin national industrial complex, the Korea East-West Power (EWP), Korea Southern Power (KOSPO) and Korea West Power (KOWEPO) each will build an LNG power plant with a capacity of some 3GW to meet an initial electricity demand of some 3GW in the first phase.
The second phase project calls for building a power transmission network, connecting the Honam region and the Youngin cluster.
In the case of the third phase project, the government plans to take steps to supplement additional power supply amounts in 2044 or later by comprehensively considering the changing power grid and the development of power technologies.
In the case of the Yongin general industrial complex, power of some 3GW will be supplied by building a power transmission network between the Shinanseong and Dongyongin substations for the operation of the first phase fabs in 2027 and a power transmission network, connecting the East Coast region and Yongin, will be constructed to supply the second phase additional power supply on top of the building of a substation in the industrial complex.
KEPCO will shoulder the cost for the construction of large-scale public power transmission networks linking Honam and East Coast regions.
The cost of constructing transmission networks to the cluster and substations for the first phase for the national industrial complex and the first and second phases of the general industrial complex is estimated at 2.4 trillion won.
The public and the private sectors will shoulder some 700 billion won, some 30 percent, and 1.7 trillion won, some 70 percent, respectively.
Agreement on Integrated Water Supply for Yongin Semiconductor Cluster
The Yongin National Industrial Complex and Yongin General Industrial Complex are expected to meet daily industrial water demand of some 1.33 million cubic meters.
The Chungju and Soyanggang dams, the major water resources of the Seoul metropolitan area, have insufficient water reserves to supply water to the industrial complexes.
Against this background, K-water and companies have solved water shortage issues by securing alternative water through the reuse of waste-water from the existing industrial complex, as well as water alternative water resources, such as reusing of power generation waters.
The integrated water supply projects will supply some 1.07 million cubic meters, an equivalent of the daily use of some 3 million people in Incheon.
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