¡°Semiconductor & display industry to invest KRW 52 trillion in factory construction etc. by 2024¡±
Park Byung Rib | riby@ | 2017-09-19 09:48:06

Baek Woon-kyu, Minister of Commerce, Industry and Energy, is discussing methods to develop semiconductors and displays at the "Semiconductor Display Industry Meeting" held on September 18. Photo by the Ministry of Industry and Commerce


Korean semiconductors and display industry is expected to invest about KRW 52 trillion by 2024. Samsung Electronics, SK Hynix and LG Display will invest KRW 15 ~ 21.4 trillion in domestic market to start a new large-scale plant.

The Ministry of Commerce, Industry and Energy, on September 18, announced that the related industry will invest KRW 51.9 trillion by 2024 at the `Semiconductor Display Industry Conference` held by the Minister of Economy, Trade and Industry, at the Kensington Hotel in Seoul on September 18. The Ministry of Industry evaluated that it would be meaningful to create good jobs through large-scale investments and to expand infrastructure for the fourth industrial revolution.

In this meeting, Mr. Kwon Oh-hyun, Vice Chairman of Samsung Electronics, Park Sung-uk, Vice Chairman of SK Hynix, Vice Chairman of LG Display, Vice Chairman of LG Display, Wonik IPS CEO, Chul Joo Hwang, Jusung Engineering CEO, Park Kyungsoo PSK CEO, Park Jae Kyu Dong Ah Eltek CEO, Vice Chairman, and Seo Kwang Hyun, Vice Chairman of Display Society.

Samsung Electronics plans to invest KRW 21.4 trillion in memory semiconductor and organic light emitting diode (OLED) production facilities in Pyeongtaek, Hwaseong and Asan in Chungnam Province by 2021. SK Hynix will invest KRW 15.5 trillion in NAND memory in Cheongju, Chungcheongbuk-do, and 15 trillion won in LG Display in Gyeongbuk and Gumi OLED, respectively, by 2024.

Meanwhile, the industry showed difficulties due to the establishment of a large-scale plant at the round-table conference, expansion of safety and environmental regulations, and shortage of experts. "We will set up a separate task force (TF) with chief executive officers as the chief executive officer, and we will make tailored solutions for each project through close consultation with related ministries, related organizations and local governments. We are looking forward to expanding cooperation and creating better jobs.¡± stated Minister Baek.

The semiconductor and display industry, on the other hand, also announced that it will provide systematic technology and financial support to strengthen the competitiveness of the equipment and parts industry by forming a win-win consortium based on related associations.

Prior to the meeting, the Ministry of Industry and Industry held a `Semiconductor Growth Fund Investment Agreement No. 1`. The semiconductor growth fund totaled KRW 200 billion, while Samsung Electronics and SK Hynix contributed KRW 50 billion and KRW 25 billion respectively, while the rest were made up of KRW 75 billion for the growth ladder fund and KRW 50 billion for the operator matching.

Earlier, Samsung Electronics, SK Hynix, Korea`s Growth Bank and Korea Development Bank signed a business agreement to build a fund to support the semiconductor industry last October, and this year, they selected InTouch Technology as the No. 1 investment target company and started investing.

The Ministry of Industry is planned to form a `Semiconductor Investment Forum` with companies attending the agreement and companies wishing to attract fund investment, and plans to utilize it as a forum for efficient operation of semiconductor growth funds and industry communication.

By Park Byung Rib riby@


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