Incheon City announced on the 27th that it has submitted an application for designation as a semiconductor specialized complex and a development plan to the Ministry of Trade, Industry and Energy.
Last December, the Ministry of Trade, Industry and Energy began a public contest targeting metropolitan local governments and companies. They will comprehensively evaluate factors such as possession of national advanced strategic technologies, maturity of regional industrial ecosystems, and the possibility of securing infrastructure and specialized personnel, and plan to designate specialized complexes at the National Advanced Strategic Industry Committee in the first half of this year.
If designated as a semiconductor specialized complex, various government supports such as infrastructure construction, workforce training, expedited permits, and tax benefits can be received.
Incheon City has positioned itself as the optimal location with a semiconductor ecosystem including industrial complexes, aviation and logistics, Incheon Free Economic Zone, and global companies, and is actively pursuing the attraction of the specialized complex.
Currently, Incheon is home to 1,299 semiconductor-related companies, including Amkor Korea and STATS ChipPAC Korea, the world’s 2nd and 3rd largest companies in semiconductor back-end processes (packaging and testing), as well as global semiconductor equipment companies such as Hanmi Semiconductor.
Since 2016, semiconductors have firmly held the top spot in Incheon’s export items. Last year, Incheon’s semiconductor export volume reached $16.8 billion, accounting for 30.9% of Incheon’s total exports. Nationwide, about 32% of South Korea’s total system semiconductor exports ($50.68 billion), or $16.4 billion, are exported from Incheon.
Moreover, system semiconductor exports, which account for 97.7% of Incheon’s total semiconductor exports, increased by 40.5% compared to the previous year, leading the overall export growth, highlighting Incheon’s potential as a city with strong growth prospects.
On the 15th, at the Ramada Songdo Hotel, the 'Incheon Industrial Complex CEO Academy' was held, where Yoo Jung-bok, Mayor of Incheon, representatives of companies in the Incheon industrial complex, members of the National Assembly, and heads of organizations gathered to hold the 'One Heart Resolution Rally for the Attraction of a Semiconductor Specialized Complex to Incheon.' February 15, 2023. [Photo by Incheon City]
The city also presented a plan for fostering the specialized complex.
First, it plans to create a new national industrial complex in the Yeongjong Free Economic Zone. On the 1.1 million pyeong (approx. 3.63 million m²) site in Yeongjong, where construction can begin immediately, the plan is to attract about 100 next-generation semiconductor packaging-related companies that have already expressed their intention to move in, developing it into a cutting-edge industrial complex serving as a global advancement base.
Based on RE100 initiatives (a campaign where companies commit to sourcing 100% of their electricity from renewable energy) including offshore wind power, fuel cells, and solar power, as well as corporate dormitories and a hydrogen mobility ecosystem, the city plans to build a global business center with comprehensive corporate support facilities, industrial, residential, and worker welfare facilities.
In the existing Songdo Free Economic Zone, a 'Semiconductor Advanced Packaging Convergence Research Institute' will be established to serve as a hub for research and development (R&D) and workforce training. In the Namdong National Industrial Complex, a 'Semiconductor Advanced Packaging Technology Support Center' will be built to foster small and medium-sized enterprises specializing in materials, parts, and equipment through development and testing (testbed) of new semiconductor materials and components.
Mayor Yoo Jung-bok said, "Incheon is a leading semiconductor city with semiconductors as its top export item and world-class semiconductor packaging companies. We will make every effort to attract the specialized complex by leveraging our strengths, including excellent semiconductor companies and workforce, as well as optimal conditions such as international airports and ports."
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