Samsung to Accelerate Operation of First Semiconductor Plant in Yongin to 2029

Samsung Electronics is pushing to accelerate the operation of its first semiconductor manufacturing facility in the Yongin National Industrial Complex to 2029. With the government speeding up the early development of the Yongin industrial complex, the mass production schedule, initially projected for 2030-2031, is expected to be advanced by 1-2 years.

According to industry sources on July 12, Samsung has set a target for the operation of the first fab among six being constructed in the Yongin complex for 2029 and is coordinating the project schedule. This plan was reportedly discussed at a recent public-private joint review meeting on mega projects chaired by the President.

For this timeline to materialize, site preparation work must begin in the second half of this year, and construction of the fab should commence in 2027. Typically, building a state-of-the-art semiconductor plant takes about two years, so subsequent procedures such as land compensation, resettlement re-evaluation, and contractor selection must proceed without delays.

In line with the government's early development policy for the national industrial complex, the timelines for power and water supply are also expected to be expedited. If the government successfully advances the construction of a 3-gigawatt (GW) liquefied natural gas (LNG) power plant and the establishment of the power supply network, along with phased water supply plans, the possibility of operation by 2029 will increase significantly.

The Yongin National Industrial Complex is a strategic site for Samsung's next-generation semiconductor production and a national strategic project. If the operation of the first fab is advanced, it will enable a quicker response to the demand for AI semiconductors and is expected to accelerate the development of the domestic materials, parts, and equipment ecosystem, as well as subsequent investments.

Previously, Samsung outlined a blueprint to invest 300 trillion won in the Pyeongtaek and Yongin semiconductor cluster and 40 trillion won in the Honam region as part of its mega project plan. An industry insider stated, "The early operation of the first fab in Yongin will serve as a catalyst for expanding production capacity and enhancing the competitiveness of the domestic semiconductor supply chain."