Pohang City Breaks Ground on Advanced Manufacturing Innovation Testbed Center with 48.7 Billion Won Investment, Boosting Local Economy

Pohang City, in collaboration with Gyeongbuk Province and POSTECH, held a groundbreaking ceremony on the 24th at the planned construction site in the Nanoconvergence Technology Institute area in Jigok-dong for the Advanced Manufacturing Innovation Testbed Center.

Pohang City, together with Gyeongbuk Province and POSTECH, held a groundbreaking ceremony on the 24th at the planned construction site in the Nanoconvergence Technology Institute area in Jigok-dong for the Advanced Manufacturing Innovation Testbed Center. Photo by Pohang City

원본보기 아이콘

The event was attended by more than 100 people, including Pohang Mayor Lee Kangdeok, Gyeongbuk Province Vice Governor Kim Hakhong, Pohang City Council Chairman Kim Ilman, Gyeongbuk Provincial Assembly members Lee Chilgu and Seo Seokyoung, POSTECH President Kim Seonggeun, Samsung Electronics Vice President An Sujin, and heads of R&D institutions.

The center will be built with a total project cost of 48.7 billion won, covering a total floor area of 15,000 square meters, with one basement level and six floors above ground. The facility will include a cleanroom for next-generation semiconductor material development, equipment and research wings, and space for advanced technology companies. Completion is targeted for early 2027.

In particular, the center is drawing attention as a hub for the development of wide bandgap (WBG) power semiconductor materials, which are expected to overcome the limitations of conventional silicon-based semiconductors. This technology is considered essential for the future industry, improving power efficiency in AI data centers and managing semiconductor power in autonomous vehicles. The global market for this technology is projected to reach 14 trillion won by 2030.

With the establishment of this center, Pohang City plans to provide manufacturing space and advanced equipment to local small and venture businesses, attract companies from the Seoul metropolitan area, encourage startups, and promote technology commercialization. Currently, around 10 semiconductor companies from across the country have submitted letters of intent to move in.

Once completed, the center is expected to generate an economic ripple effect, including 8.3 billion won in production inducement, 3 billion won in value-added inducement, and the creation of about 200 jobs, which is anticipated to greatly help revitalize the stagnant local economy.

Mayor Lee Kangdeok stated, "Just as the late President Park Chunghee succeeded in establishing Pohang Iron and Steel Company, laying the foundation for Korea's industrialization and modernization when everyone else said it was impossible, and the late Chairman Lee Kunhee propelled Korea to become a world-class nation through the semiconductor miracle, I hope today's groundbreaking will lead to innovative research and development in semiconductor processes, contribute to national development, and become the starting point for Pohang to lead the future of innovative industries."

Pohang City and POSTECH were selected for a Ministry of Trade, Industry and Energy public contest last year, and subsequently opened a semiconductor and battery specialized graduate school, focusing on nurturing world-class talent in the semiconductor field.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.