Establishment of Korea's First 8-Inch Power Semiconductor Dedicated Factory in Busan

The country's first dedicated 8-inch power semiconductor factory (fab) will be established in Busan. The 8-inch power semiconductor has about 1.8 times the productivity compared to the existing 6-inch, matching the level of global companies.

According to the Ministry of Trade, Industry and Energy, IQ Lab held a groundbreaking ceremony for the 8-inch power semiconductor fab for electric vehicles on the 5th at the Busan Power Semiconductor Materials, Components, and Equipment Specialized Complex, attended by Kang Kyung-sung, the first vice minister of the Ministry of Trade, Industry and Energy, among others.

IQ Lab plans to invest a total of 100 billion KRW to build this factory and also relocate its headquarters from the metropolitan area to Busan. Through this, IQ Lab aims to advance from a device design company to a comprehensive power semiconductor company.

Power semiconductors refer to semiconductors that convert voltage and current supplied from the power source to suit each device such as automobiles and smartphones. IQ Lab is a specialized company in silicon carbide (SiC) power semiconductor design and technology development. Its sales have grown more than 20 times over the past three years, from 910 million KRW in 2020 to 18.8 billion KRW in 2023, but growth had been limited due to the lack of its own factory.

SiC power semiconductors are resistant to high voltage and large current, making them suitable for electric vehicles. The top five global companies, including ON Semiconductor in the U.S. and Infineon in Germany, accounted for 78% of the market (as of 2022), and South Korea relies on imports for over 90%. Domestic companies include SK Powertech and DB HiTek.

Meanwhile, the Busan Power Semiconductor Specialized Complex was expected to attract new investments worth 800 billion KRW at the time of its designation in 2023, but with additional investment announcements from companies after the designation, the total investment scale has increased to 1.2 trillion KRW. The Ministry of Trade, Industry and Energy also held a general meeting in Busan on the same day with the participation of the second phase specialized complex promotion team.

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