Gyeonggi Province Creates World's Largest 'Semiconductor Mega Cluster'...Designing the Future of K-Semiconductor Industry

[Suwon Ilbo=Reporter Kim Gab-dong] Gyeonggi Province is drawing attention as it designs the future of the 'K-Semiconductor Industry' by establishing the 'world's largest semiconductor mega cluster' encompassing the entire cycle from semiconductor design to mass production, research, and talent cultivation.

South Korea's semiconductor industry holds the world's second-largest market share at 18.5%. Gyeonggi Province is the heart of South Korea's semiconductor industry, accounting for 84.7% of the nation's semiconductor industry's added value and 76% of sales.

In the eighth term of civil administration, Gyeonggi Province is developing the world's largest-scale semiconductor mega cluster connecting 'Seongnam~Suwon~Hwaseong~Yongin~Anseong~Pyeongtaek~Icheon' to protect the semiconductor industry competitiveness that Korea possesses.

This project consolidates scattered semiconductor industrial complexes in southern Gyeonggi into one to create a semiconductor ecosystem equipped with large-scale semiconductor production, research, talent cultivation, and material·component·equipment (materials-parts-equipment) companies.

First, the core industrial zones of the semiconductor mega cluster are the Yongin Idong·Namsa (7.28 million ㎡, 360 trillion won) and Pyeongtaek Goduck (3.9 million ㎡, 120 trillion won) semiconductor clusters being developed by Samsung Electronics, and the Yongin Wonsam (4.15 million ㎡, 122 trillion won) semiconductor cluster being developed by SK Hynix. With approximately 600 trillion won in private investment planned through 2047, upon completion it is projected to become the world's largest-scale semiconductor production complex.

Following the government's designation of the Yongin Idong·Namsa area as a national industrial complex candidate in 2023, the province established a dedicated semiconductor support task force (TF) to provide rapid administrative support including coordination between cities and counties, listening to resident opinions, and resolving corporate challenges.

Through these efforts, Samsung's Advanced System Semiconductor Cluster national industrial complex reduced the industrial complex plan approval period, which typically takes four years, to one year and nine months. Starting with land compensation in the second half of this year, the province aims to begin industrial complex construction work in the second half of next year, with completion scheduled for 2031.

Samsung Electronics plans to operate its first semiconductor fab by the end of 2030. SK Hynix's Semiconductor Cluster general industrial complex has mostly completed land and fixture compensation, with construction progress at 70.5% and proceeding without delay.

In Pangyo (fabless cluster), Suwon (R&D; park), Icheon (manufacturing, SK Hynix), and Anseong (materials-parts-equipment specialized zone), design and research, production, materials, components, equipment, and talent cultivation institutions linked to Yongin and Pyeongtaek are steadily establishing themselves.

The province is establishing a 'Pangyo Fabless Cluster' by attracting fabless companies and support facilities to the Third Pangyo Techno Valley. It plans to concentrate on developing and operating fabless company support programs in coordination with the existing First and Second Pangyo Techno Valley.

In September last year, the province established a System Semiconductor Development Support Center in the Second Pangyo Techno Valley to enable fabless companies to utilize advanced technical equipment and specialized personnel. On the 7th of this month, the 'Gyeonggi Province Fabless Academy' was opened in the First Pangyo Techno Valley, with plans to cultivate semiconductor design specialists through customized education tailored to fabless companies' workforce demands.

In July last year, the 'Gyeonggi Province Semiconductor Technology Center' opened at the Next-Generation Convergence Technology Research Institute within Gwanggyo Techno Valley in Suwon to handle semiconductor new product development, technology demonstration, and specialist training. Composed of a semiconductor materials-parts-equipment essential technology performance test facility (testbed) and a semiconductor workforce development center (G-SPEC), it strengthens support for small and medium enterprises' prototype manufacturing and technology demonstration and plays a role in cultivating practical field specialists centered on corporate demands.

In Anseong, the Dongsin General Industrial Complex was designated on July 23, 2023, on a 1.57 million ㎡ site in Dongsin-ri, Bogae-myeon, Anseong City as a materials-parts-equipment specialized zone. An industrial complex plan approval application was submitted in June this year, with administrative procedures ongoing and scheduled completion and corporate move-in by the end of 2030.

Global semiconductor companies are also establishing themselves in Gyeonggi Province, facilitating the construction of a semiconductor ecosystem.

The province succeeded in attracting production facilities and research and development (R&D;) centers of the world's four largest semiconductor equipment companies: Applied Materials (AMAT) of the United States, ASML of the Netherlands, Lam Research of the United States, and Tokyo Electron (TEL) of Japan.

ASML, the world's largest semiconductor lithography equipment company, has established an advanced extreme ultraviolet (EUV) cluster in Dongtan, Hwaseong, and AMAT, a semiconductor and display equipment company, is also promoting the establishment of a next-generation R&D; center in Osan. Tokyo Electron completed a research and development center in Hwaseong and began full-scale operations, Lam Research's Korea Technology Center moved into the Jigok General Industrial Complex in Yongin, and possesses a semiconductor manufacturing plant in Osan and semiconductor sales and distribution facilities in Seongnam.

Governor Kim Dong-yeon stated, "Gyeonggi Province's 'K-Semiconductor Mega Cluster' strategy is a project driving South Korea's future as the 'center of global semiconductor industry' beyond the domestic level," and added, "Comprehensive efforts are underway in investment attraction, talent cultivation, technology infrastructure construction, and new industry linkage, and this will become a core asset that will determine Korea's semiconductor's global competitiveness."