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Samsung and SK Hynix will build a chip center worth $471 billion in South Korea

Samsung and SK Hynix will build a chip center worth $471 billion in South Korea

January 19 , 2024 0

Samsung Electronics Co LTD and memory maker SK Hynix Co will spend 622 trillion won ($471 billion) to build a new chip center in South Korea.
Samsung is expected to fund about 80 percent of the project, or 500 trillion won, while SK Hynix will provide the rest, according to the report. The companies intend to invest the funds until 2047.
According to the report, the upcoming chip center will be built in an area "spanning the South Korean city of Pyeongtaek to Yongin," with the two cities about 18.5 miles apart. The city of Pyeongtaek is already home to a multibillion-dollar Samsung memory chip factory (pictured). The plant has the world's largest semiconductor production line and covers an area about the size of 16 football fields.
Samsung and SK Hynix will build 13 new fabs at the proposed chip center. By 2030, the center will reportedly be able to produce semiconductors equivalent to 7.7 million silicon wafers per month, or 92.4 million wafers per year. And TSMC, the world's largest contract chipmaker, processed about 15 million wafers in 2022.
SK Hynix will invest 122 trillion won to increase memory capacity in Yongin. The company is the world's second-largest memory maker after Samsung, making flash memory and DRAM chips as well as camera image sensors. Samsung's investment will reportedly prioritize its foundry business, which produces semiconductors based on designs provided by customers.
A significant portion of the money allocated to the new fab is likely to be spent on manufacturing equipment. The EUV system is a machine used to etch transistors onto silicon wafers that sell for up to $150 million each. The next generation of EUV equipment is expected to cost twice as much.
In addition to the 13 fabs Samsung and SK Hynix intend to build, the planned chip campus will also have three research facilities. The semiconductor industry will adopt several new manufacturing technologies in the coming years. The research institute's work may help simplify the application of these technologies in the 13 fabs to be built nearby.
One of the new technologies that Samsung and other chipmakers are currently introducing is transistor design, known as ring-gate (GAA) architecture. Electrons move between the internal components of a transistor through structures called channels. In a GAA transistor, the channel is surrounded by the gate, which is the component responsible for controlling the movement of electrons.
In addition to implementing GAA in production lines, Samsung and its competitors also plan to develop 3D versions of the architecture in the future. Future versions will make it possible to stack transistors vertically against each other. It is believed that the technology could nearly double the number of transistors that can be placed on a processor, which could help improve performance.
Three-dimensional GAA transistors are expected to be available in seven to ten years. That means some of the factories Samsung and SK Hynix plan to build by 2047 could use the technology in their production lines.
Rival chipmakers are also investing heavily to expand their manufacturing capabilities. Intel is building a series of new plants in the United States, the European Union and Israel at a cost of more than $75 billion. Micron Technology will spend up to $100 billion over 20 years to build a new memory chip manufacturing facility in New York.