Kim Dong-yeon Attracts Rare Gas Producers Following Top 1-4 Global Semiconductor Equipment Firms

Kim Dong-yeon, Governor of Gyeonggi Province (center), is visiting the Linde Korea factory in Pyeongtaek on the 3rd and receiving an explanation from a company official. Photo by Gyeonggi Provincial Government

[Asia Economy (Pyeongtaek) = Reporter Lee Young-gyu] Following the attraction of the world's top four semiconductor equipment companies, Gyeonggi Province has now succeeded in attracting investment from the U.S. company Linde, the world's largest industrial rare gas producer. The investment scale is approximately 150 billion KRW.

Gyeonggi Province announced that Governor Kim Dong-yeon signed a Memorandum of Understanding (MOU) on the 3rd at Linde's Pyeongtaek plant located in Godeok-myeon, Pyeongtaek City, together with John Panikar, Chairman of Linde Asia Pacific, Sung Baek-seok, Chairman of Linde Korea, and Jung Jang-seon, Mayor of Pyeongtaek, agreeing to work together to stabilize the domestic supply chain of semiconductor rare gases.

Governor Kim Dong-yeon said, "Last year, we achieved a remarkable feat by attracting the top four semiconductor equipment companies to Gyeonggi Province, and now Linde, the world's number one industrial gas producer, is making an additional investment. I am delighted that semiconductor material companies are joining us, enabling Gyeonggi Province to grow into a truly international semiconductor hub."

He continued, "Having experienced the IMF crisis and the 2008 global financial crisis, I have learned a lot about how crisis management and response during difficult times greatly affect the rise and fall and future of companies. I believe that Linde's investment decision will create a significant foundation for substantial growth despite economic difficulties. Gyeonggi Province will spare no effort in providing various supports and regulatory relaxations so that companies, including Linde, can operate with peace of mind," he emphasized.

John Panikar, Chairman of Linde Asia Pacific, promised, "Linde plans to continuously expand local production capacity in Korea to ensure stable product supply. We will do our best to add value to our customers' businesses and provide the best products and services."

Linde, established in 1897 in Connecticut, USA, supplies industrial gases and related equipment to various industries including semiconductors, petrochemicals, food and beverages, and displays. It records annual sales of 31 billion USD and is a global leader in industrial gas production and engineering.

According to the MOU, Linde Korea will invest 150 billion KRW in Pyeongtaek by 2031 to build industrial gas production facilities and directly produce semiconductor rare gases such as krypton and xenon domestically to supply to local customers.

Semiconductor rare gases exist only in trace amounts on Earth, making mass production difficult and artificial production impossible. These scarce materials, including krypton, xenon, and neon, are essential in the semiconductor industry.

Domestic semiconductor companies have a high dependence on foreign sources for these rare gases, prompting rapid localization efforts to stabilize the domestic supply chain. Krypton and xenon are mainly used in the etching process that removes parts of the semiconductor wafer to form circuit patterns, while neon is primarily used in the photolithography process that engraves fine circuits on semiconductor wafers.

The province expects this investment to greatly contribute not only to stabilizing the domestic supply chain of semiconductor rare gases but also to strengthening the foundation of Korea's semiconductor industry. Additionally, producing rare gases domestically, which were previously fully imported, will generate significant import substitution effects, create new jobs, and increase tax revenue, thereby revitalizing the regional economy.

Gyeonggi Province took proactive steps to resolve corporate difficulties to attract this investment.

Linde Korea currently operates industrial gas facilities in a foreign-invested exclusive industrial complex in Hyeongok, Pyeongtaek. While considering the construction of rare gas production facilities, Linde Korea sought to secure land near the Hyeongok industrial gas facilities to reduce logistics costs and operate the facilities efficiently.

In response, the province connected Linde Korea with Company A, which is located right next to Linde's Hyeongok plant and was seeking an exit strategy from the foreign investment complex due to sudden changes in the business environment. The province mediated to facilitate smooth negotiations between the two companies, leading to this agreement.

Meanwhile, prior to attracting additional investment from Linde, the province successfully attracted the world's top four semiconductor equipment companies: Applied Materials (AMAT), Lam Research, ASML, and KLA-Tencor.

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