Hynix Allowed to Use Copper in Semiconductor Plant

The Hynix semiconductor plant in Icheon, Gyeonggi Province has gotten the green light to use copper to manufacture semiconductors.

Hynix’s plans to expand its plant fell through recently, but with its conversion from the use of aluminum to the use of copper, its competitiveness in the international semiconductor market will remain intact for a while.

Government officials voted on the issue on June 25 at an economic policy coordination meeting on “The Second Phase Comprehensive Plan to Improve Business Environment” held by Kwon Oh-gyu, deputy prime minister and minister of Finance and Economy.

According to the plan, the government will revise related laws allowing semiconductor manufacturers, including Hynix, to introduce a copper processing method under the condition that they do not discharge any contaminated water.

Until now, plants located inside the Special Water Preservation Area, including Icheon, have not been allowed to use water polluting materials such as copper at all under Korea’s water and environmental conservation act.

In order to comply with clauses in the FTA with the U.S., the government will also change its emissions regulations from the ones that put restrictions on emissions concentrates depending on the kind of fuel and vehicle used to ones that control the average emissions, which vary depending on the industry.

If a related law passes, regardless of the emissions of independent vehicle models, automakers will be able to manufacture vehicles that comply with emission averages that apply to their total fleet.

In addition, with the government easing restrictions, banks and insurance companies that have not been able to own more than 15% of issued shares of companies that they have voting rights for, will be able to invest more than 15% in venture funds with the approval of the Financial Supervisory Commission.

sanjuck@donga.com abc@donga.com