Samsung Electronics is going to start operating its new plant in Pyeongtaek next month and this will create ‘Samsung Semiconductor Cluster’ that is composed of plants in Giheung, Hwasung, and Pyeongtaek. This new plant in Pyeongtaek has the biggest size out of single semiconductor production line and this will becoming a turning point for Samsung Electronics to solidify its position as the number one semiconductor business in the world.
Ripple effects in economy are also expected as another ‘super growth engine’ is added to South Korean economy. First operation of this new plant will create 150,000 jobs and this is one of causes of turning Pyeongtaek into an enterprise city. There is warm breeze in economy around Pyeongtaek as many executives and employees from Samsung Electronics Semiconductor Business Department have moved to Pyeongtaek and as Samsung Electronics’ major partners are opening up their plants and offices one after another around Pyeongtaek.
According to industries on the 16th, Samsung Electronics is going to carry out test operation on its 18 line in Pyeongtaek starting from second half of next month. This will be its first ever operation ever since it started to be built in May of 2015. Currently construction of the plant in Pyeongtaek is almost finished. Samsung Electronics is also in the final stage of bringing in first production equipment. High-tech 64-layer 3D NAND flash memories will be produced at this plant.
18 line is designed as a structure with multiple floors and has the biggest size out of single semiconductor production line. Based on 3D NAND flash memory, inputs of wafer per month for first floor and second floor are 100,000 and 200,000 respectively. Considering that production capacity of its competitors’ new semiconductor plant that was recently built is about 200,000 per month, Samsung Electronics’ 18 line is about 50% wider. Reason why production capacity of first floor is half of that of second floor is because first floor is also used for variety of offices and welfare.
Starting with 40,000 on the first floor after first operation takes place in June, Samsung Electronics is going to bring in additional production equipment that can produce another 40,000 per month during second half of this year. Some predict that Samsung Electronics will carry out an additional investment that will produce another 20,000 per month from remaining space if situations of markets are good. If this happens, first floor of 18 line will be completely full even in its first year of start of operation.
Total area of Pyeongtaek Godeok Industrial Complex where Samsung Electronics’ semiconductor plant is established is 2.83 million m2. Currently Samsung Electronics’ Hwasung business place (1.59 million m2) is the biggest out of its semiconductor business places and its business place in Pyeongtaek is almost twice the size of its business place in Hwasung. Total area of 18 line is 790,000 m2 and Samsung Electronics can build two additional plants like 18 line at its business place in Pyeongtaek. Samsung Electronics invested $14.0 billion (15.6 trillion KRW) into 18 line and spent $5.02 billion (5.6 trillion KRW) to construct its plant and surrounding infrastructures. $8.97 billion (10 trillion KRW) will be used to purchase production equipment.
Based on The Bank of Korea’s interindustry table’s production and employment inducement coefficients, $23.3 billion (26 trillion KRW) of production inducement and creation of 150,000 employments are expected through operation of 18 line. Many of Samsung Electronics’ first listed and unlisted equipment partners are also benefiting from 18 line. About 30 of semiconductor equipment partners and 20 of partners who had already moved into Pyeongtaek due to 18 line are currently constructing new plants and offices around Pyeongtaek. “This will be a great help in vitalizing local economy.” said a representative for city of Peyongtaek. “It is likely that economy will be much more vitalized when Samsung Electronics starts operating 18 line.”
Although Samsung Electronics is going to start operating 18 line next month, it is heard that it is thinking about holding an official completion ceremony in the future after considering situations within and outside of company.
Staff Reporter Han, Juyeop | email@example.com