SK's Chey vows to build Gwangju chip plants as fast as possible, no start date set

SEOUL, Oct 9 : SK Group Chairman Chey Tae-won said on Friday that chipmaker SK Hynix plans to build plants in southwestern South Korea as fast as possible, betting on robust demand growth, while declining to say when construction will begin.

"We estimate demand will keep growing at a considerably fast pace," Chey told reporters during a visit to the planned site of a new semiconductor hub in Gwangju.

He said SK had already brought forward the timeline for another chip complex in Yongin by 12 years, but even this was not sufficient.

"If necessary, it seems we may have to build in parallel," he said.

SK Hynix has set a goal of bringing forward the completion of its Yongin Semiconductor Cluster to 2033 from the originally planned 2045, when it aims to complete four fabrication plants.

Chey said the start date of the Gwangju cluster would depend on aligning the government's water and power plans with SK's construction schedule, but added the company is looking to start construction as soon as possible.

"Even if water and power come later, as long as we can complete the piling quickly, I think we will go in first," he said, referring to the construction process, adding that the company was not seeking to reduce construction costs.

"I can't give an answer today on when that will be, because we need to study it more, but what I am saying is that we will go as fast as possible," he said, adding that a timeline would probably be announced soon.

He said SK's current plan for Gwangju was for it to be about two-thirds the size of Yongin. If more land became available and demand warranted it, he expected the project could expand further.

Samsung Electronics and SK Hynix each plan to invest about 400 trillion won ($298.15 billion) to build two chip fabs apiece in the Gwangju chip cluster, which will span an area of about 8.26 million square metres on the site of Gwangju's military airport, which is due to be relocated, and a neighbouring ammunition depot.

The government and local authorities are working to provide infrastructure, including power and water.