Samsung to spend up to W360tr, with first fab set to be operational by 2030

The Korean government has designated a chip cluster in Yongin, Gyeonggi Province, as a national industrial complex, three months ahead of its original schedule, to create the world’s largest chip manufacturing hub by 2030, the Land Ministry said Thursday.
Cutting the time for site selection and designation of the industrial complex reflects the government’s commitment to accelerating administrative procedures and ensuring construction begins by December 2026, four years ahead of the initial timeline of June 2030.
In tandem with the first chip fabrication plant commencing operations in 2030, key infrastructure, including roads, water supply and power, will be expanded. The government also aims to integrate the industrial complex with surrounding residential areas, transforming the region into an industry-centered smart city.
Samsung Electronics, the world's largest memory chip-maker, already operates several chip facilities in Yongin and the surrounding area, making the region a strategic location for the new complex. Crosstown rival SK hynix has also unveiled investment plans to create chip facilities there.
During a signing ceremony at Samsung’s Giheung campus in Gyeonggi Province on Thursday, the tech giant formalized agreements with project implementers and tenant companies. The government also unveiled a detailed development plan tailored to the Yongin chip national industrial complex.
The Yongin semiconductor national industrial complex is a megasized national strategic project that will span 7.28 million square meters and host six large-scale fabs, three power plants and over 60 materials, parts and equipment partner companies.
Upon full completion, the project is expected to attract up to 360 trillion won ($246.4 billion) in private investments, create 1.6 million jobs and generate about 400 trillion won in production output.
The government’s swift actions underscore the strategic importance of timing in the semiconductor industry, a concept that has been described as “subsidies in disguise.” Streamlining the process is expected to enhance the quality of the industrial complex, while meeting tight global production timelines.
To address the relocation needs of residents and businesses, the government plans to establish a 370,000-square-meter resettlement site and a 500,000-square-meter dedicated industrial park for relocated companies.
Public rental housing will also be provided for tenant households unable to secure resettlement plots, while job opportunities at the complex will be prioritized for residents. To facilitate reintegration, displaced residents opting for land-for-land compensation will receive land for neighborhood facilities.
The government has also included plans to develop a residential town spanning 2.28 million square meters with 16,000 housing units, along with parks and other essential facilities to meet the region’s growing demand.
Additionally, transportation infrastructure will be expanded, including expressways and railways, to manage the anticipated rise in demand by 2030.
The first semiconductor fab in the industrial park is expected to start operation in 2030.
Land transactions between the Korea Land and Housing Corp. and Samsung were formalized at Thursday’s event, following the 2022 framework agreement for the Yongin complex. The agreement detailed terms for land purchases, payment schedules and investment timelines, paving the way for tenant companies to begin their projects.
Land Minister Park Sang-woo hailed the early approval of the Yongin complex as a “monumental achievement,” emphasizing its significance in Korea’s semiconductor history.
“We will spare no effort to ensure the swift development of the Yongin semiconductor national industrial complex, transforming it into the nation’s landmark industrial hubs,” Park said.