"Semiconductors as the Future of Cities"... Local Governments Betting Big on Attracting SoBuJang

Yongin and Anseong Launch Offensive with Specialized Complex Designation
Pyeongtaek, Hwaseong, and Icheon Say "Must Prevent Corporate Outflow"

The competition to attract materials, parts, and equipment (MPE) companies among major semiconductor hub cities in southern Gyeonggi Province is expected to intensify. Cities such as Yongin and Anseong are challenging the existing cities like Hwaseong, Pyeongtaek, and Icheon, where Samsung Electronics and SK Hynix semiconductor factories are located. However, some point out that the large-scale relocation of existing factories is difficult due to the nature of the advanced industry, which poses an obstacle.

A panoramic view of the Yongin Idongnam-sa Advanced System Semiconductor Industrial Complex site, where Samsung Electronics plans to invest a total of 300 trillion KRW by 2042. Samsung intends to accommodate about 150 partner companies here.
[Photo by Yongin City]

Yongin and Anseong Make All-Out Efforts to Attract Semiconductor Companies

The possibility of a major migration of MPE companies is sparked by Samsung Electronics' development of the I-dong/Namsa Advanced System Semiconductor Industrial Complex. Samsung has announced a massive investment plan worth 300 trillion won here and presented a blueprint to "house about 150 partner companies." This suggests that a significant number of partner companies may relocate their bases to the I-dong/Namsa complex.

Yongin City also plans to establish a large-scale semiconductor belt connecting the SK Hynix 'Yongin Semiconductor Cluster' currently under development with the I-dong/Namsa complex and the Giheung Nongseo district, aiming to become a genuine semiconductor hub city. Recently, Yongin Mayor Lee Sang-il expressed a strong intention to attract semiconductor MPE companies by stating, "Local MPE companies should be allowed to move into the Yongin Semiconductor Cluster if they are expanding rather than newly establishing."

Anseong City is also putting all its efforts into attracting related companies following the designation of the Dongshin General Industrial Complex as a semiconductor MPE specialized complex in July. The city plans to leverage its accessibility to the Yongin Semiconductor Cluster and the I-dong/Namsa complex as strengths, aiming to make semiconductor MPE its new growth engine. To this end, the city recently announced an organizational restructuring plan to establish a 'Semiconductor Attraction Team' within the Urban Development Department.

Hwaseong, Pyeongtaek, and Icheon Focus on Retaining Their Core Companies

The existing 'semiconductor cities' are visibly tense in response to the aggressive moves by Yongin and Anseong.

Hwaseong City, which hosts 30% of domestic semiconductor MPE companies, has recently been focusing on communication with local semiconductor companies. Hwaseong also held a meeting with ASML recently and is reportedly working on building a network involving local semiconductor companies. A Hwaseong city official said, "We will do our best to create a business-friendly environment to prevent the outflow of companies due to the development of the I-dong/Namsa complex."

Icheon City, which suffered a setback in the government's designation of a semiconductor specialized complex, is also clearly attentive to retaining its companies. Icheon emphasized, "Despite the development of the Yongin Semiconductor Cluster, SK Hynix, a representative local company, will not leave Icheon," dismissing rumors about the possible relocation of SK Hynix's headquarters.

Meanwhile, Pyeongtaek City, where Samsung Electronics' Pyeongtaek Campus Line 4 is under construction, recently received designation as a semiconductor specialized complex, which expands government support. The city holds the view that there is no concern about a large-scale outflow of MPE companies. Considering the strategic importance of the Pyeongtaek Campus to Samsung Electronics, it could rather be an opportunity to attract MPE companies.

Companies Say "Many Factors to Consider... Will Make Strategic Choices"

Contrary to the hopes of local governments, the companies themselves are cautious about premature headquarters or large-scale factory relocations. A representative of a Samsung Electronics partner company based in Hwaseong dismissed the idea, saying, "We are not yet at the stage of reviewing headquarters or factory relocation issues."

The industry views Samsung Electronics' I-dong/Namsa complex development as a mid-to-long-term investment plan until 2042, so the movements of partner companies are expected to be fluid depending on Samsung's investment pace and the semiconductor market conditions.

An industry insider said, "Considering the nature of the semiconductor industry, which concentrates advanced technology, there are many constraints on large-scale relocation of existing production lines rather than new investments," adding, "It is premature to judge the success of local governments' MPE-related industrial complex developments at this point."