Semiconductor and Display Industries: "Specialized Complex Designation Enables Accelerated Business Progress"

The semiconductor and display industries positively evaluated the government's designation of the national advanced strategic industry specialized complex, noting that it enables faster project implementation. There is great anticipation for various benefits and support measures such as fast-track permits and investment promotion subsidies.

On the 21st, the semiconductor industry expected that if not only Samsung Electronics and SK Hynix but also various materials, parts, and equipment (SoBuJang) companies gather in the semiconductor cluster within the specialized complex, the synergy effect from strengthening the ecosystem would increase. It is believed that if Samsung Electronics and SK Hynix increase domestic SoBuJang cooperation and reduce overseas dependence, price competitiveness can be enhanced through supply chain diversification. Recently, major countries such as the United States, Taiwan, China, and Japan have also been strengthening semiconductor supply chains to foster ecosystem self-sufficiency.

The clear investment period for the specialized complex until 2042 was also positively evaluated as it guarantees continuous project implementation. The concrete plans for semiconductor workforce development along with support measures for specialized universities also drew expectations. An industry official said, "The more the government focuses on semiconductors as a key national industry, the greater the effect of attracting potential talent."

Expectations for speedy project implementation are also high. Since semiconductors are a timing-sensitive industry and competition at the national level has recently intensified, timely investment is crucial. Kyung Kye-hyun, President of Samsung Electronics' Device Solutions Division, emphasized at the '3rd Pan-Government Promotion Support Group' meeting held last month, "To maintain an edge in fierce global semiconductor competition, early groundbreaking of the new semiconductor specialized complex is of utmost importance."

Samsung Electronics and SK Hynix issued official statements welcoming the government announcement. Samsung Electronics stated, "In response to the government's designation of the specialized complex, we will do our best with the government and local governments to successfully establish the world's largest semiconductor mega cluster." SK Hynix said, "We welcome the designation of the specialized complex and will continue with the planned investments," adding, "We will also proceed with investments at existing sites in Icheon and Cheongju as planned to contribute to strengthening national semiconductor competitiveness and revitalizing the regional economy." The Korea Semiconductor Industry Association also issued a welcoming statement immediately after the government announcement, saying, "The comprehensive industrial ecosystem support policy through the designation of the specialized complex will greatly help secure the future competitiveness of the semiconductor industry as well as national advanced strategic industries and the SoBuJang industry."

The display industry positively evaluated the upgrade of the Cheonan and Asan areas, which account for about 50% of production sales, from a general industrial complex (designated by provincial governors) to a national advanced strategic industry specialized complex, enabling benefits for new factory investments. With exemption from preliminary feasibility studies, there is growing expectation that the construction of essential infrastructure such as water supply, wastewater treatment, and access roads required for new factory construction can proceed swiftly.

Additionally, reductions in national and public property usage fees and lease fees for companies located in the specialized complex, exemptions from development charges, wide-area transportation facility charges, and farmland preservation charges, increased floor area ratios (up to 1.4 times) for complexes housing companies with advanced strategic technologies, and increased investment tax credit rates (15% for large enterprises, 15% for mid-sized enterprises, 25% for small and medium enterprises) are expected to alleviate investment cost burdens through investment incentive support.

A Samsung Display official said, "The Cheonan and Asan areas are not only concentrated with domestic display companies but also represent an industrial hub accounting for about 50% of domestic display production sales," adding, "Following the designation of display as a national strategic technology, this specialized complex designation has laid the foundation to secure a competitive edge in the increasingly competitive OLED industry." The Korea Display Industry Association stated in a position paper, "The promotion of fast-track investment permits, investment promotion subsidies, and various benefits and support measures will help stimulate new investments in the panel industry," and evaluated, "Furthermore, it is expected to improve the localization rate of SoBuJang, which had stagnated due to domestic investment sluggishness (65%)."