SK Siltron will be investing KRW 1 trillion in expanding semiconductor wafer production facilities by 2024. It is attempting to leap forward as the leader in 12-inch wafer production in response to the surge in demand for semiconductors.
On the 16th, SK Siltron announced that it will invest KRW 1.49.5 trillion by 2024 to expand 12-inch wafer production in the Gumi National 3rd Industrial Park. The foundation construction will begin on a 42,716 square meter site, in the first half of the year, and 12-inch wafers will be mass-produced in the first half of 2024.
The president of SK Siltron, Yong-ho Jang, said “Wafer investment is a risky investment since it is difficult to accurately predict and quickly respond depending on changes in the market. We will be equipped with a high-quality wafer manufacturing capabilities through collaboration and technological innovation with global semiconductor companies to become a leader in the wafer department.”
SK Siltron will hire more than 1,000 new employees with the new investment. An SK Siltron official said, “This investment will contribute in boosting up the local economy of Gumi region by creating jobs.”
Wafer is a key material for making memory and system semiconductors. The shortage of wafers is getting worse as demand for semiconductor production has increased significantly globally. Five major global manufacturers, South Korea, Japan, Taiwan, and Germany, occupy more than 90% of the wafer market share. SK Siltron is the only one company that represents Korea, and ranks third in the world in 12-inch wafer.
When the U.S. Department of Commerce announced the results of a supply chain survey of 150 semiconductor companies, it pointed out that the wafer supply shortage is the main cause of the semiconductor shortage. This supply shortage will last until 2026. There was a time when German government rejected Taiwan Global Wafers' contract to acquire Siltronic, and resulted in calling off the merger. Companies are announcing their investment for capacity expansion, and countries are fiercely competing against each other.
SK Siltron has been surpassing its monthly maximum production volume for two years as Samsung Electronics, SK Hynix, and Intel TSMC’s demand for 12-inch and 8-inch panels increase.
By Staff Reporter Ji-woong Kim and So-ra Park (jw0316@etnews.com), (srpark@etnews.com)