Samsung Electronics will begin production at its first Yongin chip plant in 2029, 1-2 years earlier than originally planned.

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Samsung Electronics has moved up the production start date of the first line at its Yongin semiconductor plant in South Korea from 2030-2031 to 2029.

According to Yonhap News Agency on July 12, Samsung Electronics has set the production launch target for the first wafer factory in the Yongin National Industrial Park for 2029, ahead of the previous market expectation of 2030 to 2031.

This adjustment aligns with the South Korean government's policy guidance to accelerate the construction of the Yongin National Industrial Park. The report cited informed sources as saying that the relevant plan was discussed at the "Large-Scale Projects Government-Business Joint Inspection Meeting" presided over by the President on June 6.

Samsung Electronics had previously announced plans to invest a total of 20.3 trillion won in Pyeongtaek, Yongin semiconductor clusters, and other locations.

Industry insiders say that if the first factory goes into production as scheduled in 2029, it will not only accelerate Samsung's capacity expansion, but also promote the formation of a domestic ecosystem for semiconductor materials, components, and equipment in South Korea.

Groundbreaking in 2027 is a critical milestone; Power and Water Supply are Core Constraints

According to industry estimates, the construction period for the most advanced semiconductor factories is typically around two years.

Based on this, to achieve the production target by 2029, the park's construction must be initiated no later than the second half of this year, and the factory itself must break ground in 2027.

Meanwhile, follow-up procedures such as land compensation, expropriation decisions, and selection of construction contractors must proceed in an orderly manner without delays. The timeline is tight, and any lag in any step may affect the realization of the final target.

Whether the supporting infrastructure can keep pace is the key variable determining if the first factory can be put into production on schedule.

The industry generally believes that, since the South Korean government has clearly stated its intention to compress the construction period of the Yongin National Industrial Park, the supply schedule of essential infrastructure such as electricity and water is also expected to be moved forward.

According to reports, the Korean government is currently pushing forward the early construction of a 3-gigawatt liquefied natural gas power plant, and plans to shorten the supply schedules for the second and third phases of power as well as the respective water supply phases.

Analysts point out that if the above supporting plans can be executed as scheduled, the feasibility of the first factory starting production in 2029 will be greatly enhanced.

Over 20 trillion won in strategic-level investment

The Yongin Semiconductor National Industrial Park is Samsung Electronics' next-generation chip production base and a national strategic project for South Korea.

According to the park's plans, Samsung Electronics intends to build a total of six semiconductor production factories here.

At the end of last month, Samsung Electronics announced at the "Large Project" press conference that it plans to invest 20.3 trillion won in projects including Pyeongtaek and the Yongin semiconductor cluster, and another 40 trillion won in the Jeolla province area. Industry insiders stated:

Advancing the factory production start date will not only allow Samsung to respond more quickly to the rapidly growing demand for artificial intelligence semiconductors, but also enable the effects of building South Korea's domestic semiconductor ecosystem to manifest earlier than expected.

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