Work begins on Hyundai plan in Scotland

05/01/1997

Work begins on Hyundai plant in Scotland

Scotland`s Secretary of State Michael Forsyth and Korean Ambassador to the UK Dong Jin Choi officiated at the groundbreaking of the 150-acre compound for Hyundai Semiconductor Europe Ltd. (HSE)`s semiconductor facility in Halbeath, Dunfermline, Scotland. This first phase of construction follows the October announcement by HSE that it will build two state-of-the-art semiconductor facilities in Dunfermline, totaling more than $3.6 billion.

"Today`s groundbreaking marks the start of a hugely significant project for Dunfermline and for Scotland," said Forsyth. "Hyundai`s decision to locate this new plant here enhances our reputation as one of Europe`s most attractive business locations and sends a clear signal throughout the international business world that Scotland is the place to invest. This project is a flagship in terms of technologies used in the manufacturing process and in the scale of investment in Scotland by one of Korea`s largest industrial groups."

The ceremony marks the start of the project`s first phase, FAB 1, a $1.7 billion wafer plant investment creating 1000 jobs. FAB 1 is scheduled to start operations by the end of 1988. The second phase, FAB 2, will add a planned $2.4 billion wafer plant and another 1000 jobs. Construction of the new buildings alone is expected to generate over 1600 jobs.

HSE, part of the Hyundai Group of Korea, employs around 33,000 people worldwide and produces DRAM semiconductors. Mong Hun Chung, chairman of Hyundai Electronics Industries Co. Ltd., HSE`s parent company, also attended the ceremony. "Scotland`s many advantages influenced our decision," he said. "Among them are a highly skilled labor force, cost-competitive operating environment, well-developed electronics infrastructure, close proximity to some of our major customers, and strong governmental support."

H.K. Yoo, managing director of HSE, said that Hyundai aims to become the world`s second largest memory chip producer by 1999. "We are engaging in the process of globalizing our manufacturing facilities to achieve this, and Scotland`s vast semiconductor infrastructure was a key factor in our decision to locate here."

Presently, Scotland`s semiconductor industry includes Motorola, NEC, National Semiconductor, Seagate, Hughes Microelectronics, and Semefab. The industry employs 8000 highly skilled workers in manufacturing or support facilities. Although Scotland represents only 1.5 percent of Europe`s population, it accounts for 13 percent of Europe`s semiconductor production capacity.