Busan City Attracts Specialized Complex for Semiconductor Materials, Parts, and Equipment Industry

The Busan Power Semiconductor Specialized Complex was finally selected on the 20th in the Ministry of Trade, Industry and Energy's call for applications for the designation of specialized complexes for materials, parts, and equipment (SoBuJang) industries.

The Ministry of Trade, Industry and Energy's SoBuJang specialized complexes are projects that cluster SoBuJang companies around leading enterprises, fostering a cooperative ecosystem among companies and technological self-reliance to strengthen the domestic supply chain.

Prior to this selection, Busan City has been establishing a power semiconductor industry cluster in the Dongnam-guen Radiation Medical Science Industrial Complex since 2017 and built a Power Semiconductor Commercialization Center to promote prototype production, contract manufacturing orders, and workforce development projects. Additionally, it attracted investments from power semiconductor companies such as SK Powertech and JMJECO.

The Busan semiconductor SoBuJang specialized complex aims to secure the supply chain of compound power semiconductors, which are core materials for power conversion devices such as electric vehicles and on which 95% of domestic demand depends on overseas sources.

To this end, government-supported projects and city policies will be promoted in Jang-an-eup, Gijang-gun, within the Dongnam-guen Radiation Medical Science Industrial Complex to establish infrastructure, build testbeds, conduct research and development (R&D), and foster human resources for creating a high-performance compound power semiconductor ecosystem.

Furthermore, various support systems such as incentives related to location and facility investment, rent reductions for national and public properties, and regulatory exemptions will be provided to companies residing in the SoBuJang specialized complex.

Busan City plans to actively support the semiconductor industry by establishing a mid- to long-term comprehensive plan and creating a dedicated organization to support the construction of manufacturing process facilities and workforce development.

Location map of the Dongnam Radiation Medical and Science Industrial Complex, designated as a specialized complex for power semiconductor materials, parts, and equipment industry.

An official from the city stated, “We expect an economic ripple effect worth trillions of won from the designation of the power semiconductor SoBuJang specialized complex.”

Mayor Park Hyung-jun said, “Currently, the compound power semiconductor market is led by the United States and Europe, and the domestic ecosystem is still weak. With the designation of the SoBuJang specialized complex, Busan will do its best to secure the domestic supply chain and complete the corporate ecosystem.”

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