[Metro24] Gyeonggi-do, To Become the World's Semiconductor Mecca...

Gyeonggi Province is emerging as a global semiconductor hub. Samsung and SK Hynix are pushing for the largest investments in history since the era of Dangun in Yongin, Gyeonggi Province. Samsung plans to pour 300 trillion won by 2042. SK Hynix has also early announced an investment of 120 trillion won. Samsung and Hynix are the world’s top two memory semiconductor companies.

However, beneath the surface, their appearances are like "sandcastles." Semiconductor equipment is tightly controlled by American companies such as AMAT and Lam Research. Materials are dominated by Japanese companies. Without the equipment and materials from these companies, it is impossible to properly manufacture a single semiconductor. The uproar in South Korea in 2019 when former Japanese Prime Minister Abe imposed export restrictions on semiconductor materials is still vivid. All of this is because they failed to nurture partner companies and create a high-quality ecosystem.

In that regard, the world’s number one semiconductor foundry TSMC and K-Battery serve as "negative examples."

TSMC holds 57% of the foundry market share, while Samsung holds 16%, with TSMC overwhelmingly dominant. Just over a decade ago, the gap between the two companies was not this wide. TSMC’s rapid growth is due to a well-established ecosystem. Around TSMC, world-class fabless (design) and chipless (design house) companies are concentrated. Taiwan’s ASE, the world’s number one OSAT (outsourced semiconductor assembly and testing) company, is also a key player in semiconductor back-end processing.

The recent soaring value of K-Battery is also closely related to its well-established surrounding ecosystem. Batteries (cells), which account for 40% of the cost of electric vehicles, have three of the world’s top five companies based in Korea. Additionally, among the top 10 global cathode material companies, which make up 50% of battery costs, five are Korean companies. LG Chem holds the undisputed world number one position in battery patents. It is an optimal ecosystem combination.

During his recent business trips to the U.S. and Japan, Gyeonggi Province Governor Kim Dong-yeon signed consecutive investment attraction MOUs with industrial gas companies Air Products and Linde. He also secured the relocation of the Integris semiconductor materials research center to Suwon. Notably, he signed a 133 billion won agreement with Japan’s "Alvac Group," which possesses the world’s best vacuum technology. It is fortunate that world-class semiconductor small and medium enterprises are flocking to Gyeonggi Province.

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