UPDATED. 2019-10-23 00:08 (수)
SK Hynix answers to the Government’s deregulation with a win-win fund of over one trillion won.
SK Hynix answers to the Government’s deregulation with a win-win fund of over one trillion won.
  • Yy Lee
  • 승인 2019.04.01 08:55
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Total support to be 1.2 trillion won over 10 years

Hearing the news of passing the deliberation on the specifically requested site for the industrial complex for the construction of the Yongin semiconductor cluster in Gyeonggi-do, SK Hynix responded with a "win-win fund".

SK Hynix announced on the 28th that it has confirmed plans to strengthen its win-win relationship with partner companies and semiconductor ecosystem with 1.22 trillion won investment. △ 300 billion won will be for the establishment of the win-win fund △ 638 billion won for the establishment of the win-win program and the win-win cooperation center based on artificial intelligence (AI), and △ 280 billion won for joint research and development (R & D).

The creation of the win-win fund worth 300 billion won will take place first. In time with the construction of the first factory in 2022, 200 billion won for the Semiconductor Happiness Fund and 100 billion won for the equity investment fund will be set up. The funds created will be invested in technologically innovative companies with potential for growth related to semiconductor equipment, materials, and components. It will be used for business loans, interest-free loans and start-up funding, and mid- to long-term equity investments.

Afterward, it will establish a ‘Win-win Cooperation Center (tentatively named WeDoTech Center)’. It will invest 638 billion won for the progress of such win-win programs. Among the funds, 590 billion won will be used to create the ecosystem for the AI ​​program and the Internet (IoT), while it will also be utilized in the win-win program to strengthen the semiconductor capacity. The process is scheduled to be carried out for 10 years with an annual expenditure of 59 billion won.

The detailed programs are: △ Supporting localization (36 billion won per year), △ fostering start-up of semiconductors and AI venture business (8 billion won per year), △ fostering semiconductor talents (10 billion won per year) △ hiring support for partners (1 billion per year) △ environment, safety, and healthcare support (3 billion per year), and △ management support including industrial security (1 billion won per year).

The remaining 48 billion won will be invested in the establishment of a win-win cooperation center to be used as a start-up research space, a meeting room, a training center, and others for SMEs within the industrial complex, and to build semiconductor-tailored safety education facilities and energy reduction infrastructure. A total of 280 billion won will be invested for 10 years for R & D with partner companies with an annual investment of 28 billion won. SK Hynix has been operating a win-win cooperation program called 'Technology Innovation Company' since 2017, which selects three companies every year to support the growth of companies with high technology potential. The company will strengthen joint R & D by doubling the number of companies that can participate in this program.

Once the semiconductor cluster is established, 25,000 jobs are expected to be created. SK Hynix said it plans to hire 15,000 people in total, including △ 12,000 people for FAB operation and management (3,000 per fab) and △ 3000 people for the support departments. Also, about 8,000 people will be employed by fifty equipment, materials, and parts suppliers that will move into the cluster with SK Hynix. The number of direct employment by construction companies is expected to reach 2,000.

The semiconductor cluster project is a project to build four semiconductor fabs (FAB) with a total investment of about 120 trillion won on a site of about 4,480,000 ㎡ around Wonsam-myeon, Yongin-si, Gyeonggi-do.

Previously, SK Hynix had announced that it would establish the Yongin-Icheon-Cheongju Semiconductor as the semiconductor 3-axis. △ Yongin will be pursued as the DRAM/next generation memory production base and semiconductor win-win ecosystem base, △ Icheon will fulfill the role of a head office, R & D/Mother FAB and DRAM production base, and △ Chungjoo will be used as the NAND Flash-centered production base to pursue the mid- to long-term growth of the company.

Kim Jung-Ki, managing director of SK Hynix, said, "Once the win-win cooperative program of the mutually beneficial, globally competitive cluster is initiated, the localization rate of semiconductor equipment will be higher than 20%, which is the current level. We will contribute to strengthening the domestic semiconductor ecosystem by completing the remaining procedures.”


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