Busan City and STI Sign MOU for Establishing Power Semiconductor Material Production Facility

Agreement with STI, a Power Semiconductor Material Company, at Busan City Hall on the 22nd at 2 PM

Establishment of Power Semiconductor Material Production Facility in the Southeast Radiation Medical and Science Industrial Complex

On the 22nd at 2 p.m., Busan City will sign a Memorandum of Understanding (MOU) with STI for the establishment of a power semiconductor material production facility at the International Protocol Room on the 7th floor of Busan City Hall.

Mayor Park Hyung-joon and STI CEO Seo Tae-il are scheduled to attend the signing ceremony in person.

This agreement ceremony was arranged to build a power semiconductor material (ingot growth and wafer) production facility for STI (Daegu Dalseong-gun) within the Southeast Radiation Medical and Science Industrial Complex (Jangan-eup, Gijang) with the goal of domesticating silicon carbide (SiC) power semiconductor wafers.

STI plans to invest 300 billion KRW by 2026 to build a production facility on a 40,000-pyeong site within the Southeast Radiation Medical and Science Industrial Complex and gradually employ 250 people.

An official from the city stated that this is the first investment attraction outside the region (Daegu) since being designated on July 20 as a “Specialized Complex for Power Semiconductor Materials, Parts, and Equipment Industry” under the Ministry of Trade, Industry and Energy. The significance lies in establishing a domestic power semiconductor industry value chain through the localization of silicon carbide (SiC) power semiconductor materials (ingot growth and wafer), which have been entirely dependent on overseas imports.

The main contents of the agreement are as follows.

▲ Busan City will provide administrative support for all necessary matters to ensure the smooth progress of STI’s successful settlement and investment projects in Busan.

▲ STI will contribute to regional economic development and the creation of good jobs by establishing new business sites within Busan, strive to hire local talent, and promote the development of related local industries.

STI.

Since the designation of the specialized complex for power semiconductor materials, parts, and equipment, inquiries from domestic power semiconductor-related companies regarding investment (settlement) have been steadily coming in. To ensure the successful operation of the specialized complex, the city is actively coordinating with relevant central government ministries and partner organizations to form a task force, and is discussing research and development, infrastructure establishment, and workforce training support projects. The city stated it will strive to complete a domestic high-performance compound power semiconductor ecosystem through the specialized complex.

Additionally, an STI official said that due to global carbon neutrality policies, demand for power semiconductors is rapidly increasing across electric vehicles, solar power generation, telecommunications, space, and aerospace industries. Leading countries such as the United States and the European Union (EU) are designating silicon carbide (SiC) power semiconductor materials as strategic resources to prepare for related material supply shortages. Through investment in the Busan power semiconductor materials, parts, and equipment specialized complex, STI aims to localize power semiconductor materials (wafers), secure domestic supply chains, and ultimately become a global company supplying 10% of the world market for silicon carbide (SiC) materials (wafers).

Mayor Park Hyung-joon said, “This agreement is significant as the first investment attraction achievement since the designation of the Busan power semiconductor materials, parts, and equipment specialized complex, and as the first material (wafer) production facility established within the complex. Through domestic localization of materials (wafers), which is a weak area in the domestic power semiconductor industry, we will complete the domestic supply chain and do our best to ensure Busan firmly establishes itself as the domestic production hub for power semiconductors.”