Securing enough water critical for Samsung's envisioned chip cluster in Yongin

By Baek Byung-yeul

The government tried to allay concerns, Tuesday, over possible difficulties supplying huge quantities of water to a mega-size semiconductor cluster that Samsung Electronics plans to build in Yongin, Gyeonggi Province by 2042 at a cost of 300 trillion won ($236 billion), according to officials. They say plans are being made to prepare infrastructure for water procurement, which is essential for chip production.

To improve its capability in system semiconductors, Samsung, the global leader in the memory chip sector, is scheduled to begin construction of the facility in Yongin by the end of 2026.

To this end, Gyeonggi Province and Samsung Electronics held a meeting on June 1 to discuss key issues such as securing industrial water and electricity, and analyzed that the semiconductor cluster will require 650,000 tons of industrial water per day. The amount is 2.5 times more than the 265,000 tons consumed by another semiconductor cluster in the city housing SK hynix.

However, a media report said that the Ministry of Environment raised objections about drawing huge quantities of water from Paldang Dam in Gyeonggi Province, saying that the dam does not have enough water to spare.

With the issue of a crucial plan that will shape the country's economy, the government has set out to give an explanation as the Ministry of Land, Infrastructure and Transport, the Ministry of Environment, and the Ministry of Trade, Industry and Energy jointly issued a clarification on Tuesday, stating that infrastructure supply of industrial water for the Yongin system semiconductor cluster, led by Samsung Electronics, is proceeding smoothly.

“It is not true that the Ministry of Environment has stated that "it is difficult to withdraw water from Paldang Dam,” the government said in a statement.

“The Ministry of Environment has organized a water supply taskforce to secure additional water to ensure an uninterrupted water supply. The Yongin Advanced System Semiconductor National Industrial Complex requires 650,000 tons of water per day and is considering expanding the supply capacity of Paldang Dam by utilizing a large-scale power generation dam upstream of Paldang Dam. In addition, the ministry plans to secure additional water by utilizing surplus water in the company's existing business sites and reusing sewage to ensure that the water supply is not disrupted.”

An industry official working in the domestic chip industry said that “water is essential in the semiconductor production process, along with power supply, and this is an issue that must be resolved in consultation with the government.”

He added, “In a project of this magnitude, there will be various detailed plans back and forth during the discussion process, but the government has a strong commitment to the project.” The official also said that he expects the plan to proceed without any problems.

The semiconductor cluster to be built in Yongin is a project in which Samsung Electronics will invest 300 trillion won, an average of 15 trillion won per year for 20 years until 2042, to build five advanced semiconductor manufacturing plants.

The cluster will not only produce system semiconductors, but also house a large ecosystem of semiconductor-related materials, components, equipment and research companies from Korea and abroad.

President Yoon Suk Yeol said in March that the semiconductor cluster is a key project that will determine the fate of the Korean economy and be responsible for the country's future.

“The current global competition situation is a matter of life and death, and we must hurry," he said in March. "We will grow the semiconductor mega-cluster into the world's largest."

Samsung Electronics also vowed to make a significant contribution to the country's economic development through the cluster.

"The world's largest semiconductor mega-cluster will link semiconductor production complexes such as Giheung (Yongin), Hwaseong, Pyeongtaek and Icheon, as well as nearby small and medium-sized enterprises and fabless companies," Samsung said. "If 300 trillion won is invested, the direct and indirect production-inducing effects will reach 700 trillion won and the employment-inducing effects will reach 1.6 million people."