Korea accelerates power grid construction for chip complex

South Korean Minister of Trade, Industry, and Energy Lee Chang-yang inspects the construction site of power transmission facilities in Dangjin, South Chungcheong Province, on Aug. 2. [Courtesy of Ministry of Trade, Industry, and Energy]

The South Korean government is expediting the construction of power transmission systems to secure a stable power supply for the massive semiconductor complex that is set to be established in Gyeonggi Province.

On Wednesday, Minister of Trade, Industry, and Energy Lee Chang-yang visited the site of a project to build a high-voltage direct current (HVDC) transmission system, ensuring that the construction is facilitated and completed by the year end as scheduled.

The HVDC project involves the construction of a 34.2-kilometer-long power line that connects Dangjin, South Chungcheong Province, and Godeok in Pyeongtaek, Gyeonggi Province. The project costs 1.16 trillion won ($893 million) in total.

Following the completion of the 1.5-gigawatt phase 1 in December 2020, another 1.5 GW will be completed as part of phase 2 of the project by December, six years after the project was initiated.

The transmission capacity totals 3 GW, which is sufficient to deliver power produced in the western coastal area to the chipmaking facilities concentrated in the southern Gyeonggi region.

Another 3 GW-capacity transmission line between North Dangjin and Sintangjeong is also under construction and is scheduled for completion in December next year, following a series of delays since its initiation in 2003.

The new transmission lines are expected to alleviate constraints concerning power generation in the western coastal area and increase the power supply to the capital region.

In addition, a transmission line between Godeok and West Anseong is scheduled for completion on August 10.

The Taean and Dangjin thermal power plants on the west coast have not been able to generate power at full capacity due to the lack of power transmission lines, resulting in power constraints of up to 3.4 GW.

The government is also planning to work on power transmission from the east coast.

According to a plan by the industry ministry, a 220 km-long power highway is set to be built to bring a total of 8 GW from nuclear power plants on the east coast and Gangwon Province.

“Local acceptance work is underway for the east coast HVDC project for completion in 2025,” said one official from the ministry.

There has been growing demand for extensive power grid construction to supply power to chip clusters, following the government’s support to foster advanced industries.

SK Group plans to invest 120 trillion won by 2027 to operate SK hynix Inc.’s semiconductor plant 1 and complete the cluster formation in Yongin by 2029.

Samsung Electronics Co. also plans to build five plants nearby. Along with the company’s research center in Giheung and the memory and system fab in Godeok, Pyeongtaek, the largest chip production hub will be formed in the Yongin-Pyeongtaek area.