Chungnam, Asan to Establish Automotive Semiconductor Design Company Ecosystem

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province plans to establish an ecosystem for vehicle semiconductor design companies in Asan to seize dominance in the global automotive semiconductor market.

The province announced on the 13th that it has attracted the Korea Automotive Technology Institute's vehicle semiconductor and autonomous driving R&D campus to Asan.

The attraction of the R&D campus is the result of multiple consultations following a proposal for business support to the Korea Automotive Technology Institute during the Small and Medium Research and Development Special Zone vision in October last year. It is scheduled to be built by 2024 on a 5,696㎡ site in Jangjae-ri, Baebang-eup, Asan City, with one basement floor and seven above-ground floors.

Once the R&D campus is completed, six headquarters including the Korea Automotive Technology Institute's Artificial Intelligence (AI) Mobility and Smart Car divisions, two departments such as Testing and Certification Support and Industrial Technology Security, and two centers including the AI Big Data and Computing Software Education Center will be housed and operate there.

In particular, the province plans to establish an industrial innovation facility for vehicle semiconductor functional safety and reliability based on the R&D campus, and attract projects linked to the development of Korean-style open-core-based AI semiconductor intellectual property and AI semiconductor technology development for integrated regional control of autonomous driving.

The province also expects synergy effects with the R&D campus, given that many related companies in fields such as display, semiconductors, and batteries are located in the region, and its proximity to the metropolitan area facilitates securing excellent talent.

As of 2019, 591 automotive parts companies are located in Chungnam, of which 195 are body and electrical parts companies, accounting for 32% of the total, indicating a high demand for vehicle semiconductors.

Considering these conditions, the province expects that operating the R&D campus will establish the nation's first vehicle fabless base in the region, providing a stepping stone for Chungnam to leap forward as a hub for the future automotive industry.

Above all, the recent rapid shift in the automotive paradigm from internal combustion engine vehicles to eco-friendly and autonomous vehicles raises expectations for Chungnam's plan to create an ecosystem for vehicle semiconductor design companies.

For example, vehicle semiconductors are non-memory system semiconductors embedded in automotive electronic devices that control engines, transmissions, dashboards, etc., and are considered a core field of future mobility. Typically, an internal combustion engine vehicle contains about 200 semiconductors, electric vehicles have 400 to 500, and autonomous vehicles range from 1,000 to 2,000.

In line with this, the global vehicle semiconductor market size is projected to grow rapidly from $4.5 million in 2020 to $17.5 billion in 2024.

In this regard, the province envisions seizing dominance in the vehicle semiconductor market centered on the R&D campus and using it as a driving force to move the global automotive market.

Yang Seung-jo, Governor of Chungnam Province, said, “The R&D campus to be established in Asan cannot immediately solve the current vehicle semiconductor shortage, but it is significant as a foundation to lead changes in the automotive parts industry ecosystem and secure future core technologies.” He added, “The province will strive to build the vehicle fabless ecosystem as planned so that Chungnam can leap forward as a global hub in the vehicle semiconductor field.”

This content was produced with the assistance of AI translation services.