Power remains a challenge for Yongin Semiconductor Cluster

[Photo by Lee Chung-woo]

A South Korean mega semiconductor cluster that is being constructed in Yongin, Gyeonggi Province, and on which the future of the country’s semiconductor competitiveness depends, is having difficulty in securing a power supply.

The Yongin Semiconductor Cluster is expected to require up to 10 gigawatts (GW) of power. Given that a typical nuclear power plant has a capacity of 1GW, the cluster is projected to require a substantial amount of power that is equivalent to that produced by ten nuclear power plants.

To address the issue, a proposal was made to bring surplus renewable energy, including wind and solar power, from the southwestern coastal area of the country to the Taean substation in South Chungcheong Province, then transport it to the remaining 110-kilometers plus distance to Yongin Semiconductor Cluster. But an issue that remains to be resolved is how to transport the electricity to Yongin, as it will cost trillions of won to build a transmission line to bring electricity from the Taean area.

In the past, Samsung Electronics spent about 400 billion won ($292.67 million) to build a 23-kilometer transmission line from Godeok to West-Anseong (Seo-Anseong) to power its Pyeongtaek Campus. The country’s state utility Korea Electric Power Corp. (KEPCO), which is facing a massive deficit, reportedly believes that the companies benefiting from a dedicated transmission network to the Yongin Semiconductor Cluster should bear the construction costs under the “beneficiary pays principle.”

Semiconductor companies, however, are reportedly opposed as they already bear annual electricity costs amounting to trillions of won and that it would be a “double burden” if they also had to pay to build a transmission network.

The government is also aware of the issue and is looking for solutions.

According to sources from the Korean government and semiconductor industry on Sunday, the Ministry of Economy and Finance, the Ministry of Trade, Industry, and Energy, KEPCO, Samsung Electronics, and other chipmakers recently formed a task force to resolve the power shortage at the Yongin Semiconductor Cluster and are scheduled to begin their first discussions within one to two weeks.

The government also unveiled a comprehensive support plan for the chip industry during the previous week, stressing that the government and local governments should bear the responsibility for basic infrastructure to ensure the rapid construction of the Yongin Semiconductor Cluster.

“If the government is having difficulties providing subsidies to Korean chipmakers, it should at least resolve the infrastructure issues for factory operations to alleviate the burden on these companies,” Kim Yong-serk, a professor of electronic and electrical engineering at Sungkyunkwan University, said.