Daejeon City Signs Multilateral Agreement to Establish Defense and Space Semiconductor Supply Chain

Strategic Agreement Signed with KAIST, ETRI, Hanwha Systems, and Daejeon Technopark

From the left, Woo-Yeon Kim, Director of Daejeon Technopark; Kwang-Hyung Lee, President of KAIST; Jang-Woo Lee, Mayor of Daejeon; Seung-Chan Bang, Director of ETRI; Jae-Il Son, CEO of Hanwha Systems (Photo by Daejeon City)

Daejeon City has signed a multilateral agreement to establish a domestic supply chain for defense and space semiconductors.

On November 18, Daejeon City entered into a "Financial business agreement for the establishment of a domestic supply chain for defense and space semiconductors" with KAIST, the Electronics and Telecommunications Research Institute (ETRI), Hanwha Systems, and Daejeon Technopark at City Hall.

The signing ceremony was attended by Jang-Woo Lee, Mayor of Daejeon; Kwang-Hyung Lee, President of KAIST; Seung-Chan Bang, Director of ETRI; Jae-Il Son, CEO of Hanwha Systems; and Woo-Yeon Kim, Director of Daejeon Technopark.

This agreement aims to build a development and manufacturing ecosystem for defense and space semiconductors, which are essential for national security. The participating organizations agreed to cooperate in various areas, including joint research and development for the localization and performance enhancement of semiconductors, the establishment of a public fabrication facility for process development and manufacturing, and the training of specialized personnel.

Recently, as the K-Defense industry rapidly grows with the goal of becoming one of the world's top four defense powers, and as the space industry enters the "New Space" era led by the private sector, the high reliance on foreign core semiconductors has made securing a stable supply chain a key task for national competitiveness.

To address this, the Defense Acquisition Program Administration established the Defense Semiconductor Business Group in Daejeon last year and formulated a development strategy focused on securing domestic production capacity for defense semiconductors. In addition, the Korea Aerospace Administration is also pursuing research and development projects to secure core technologies for space semiconductors.

Daejeon is recognized as the optimal location for building a defense and space semiconductor ecosystem, thanks to its solid foundation in semiconductors and advanced science and technology, as well as its growth as a hub for the defense and space industries.

The city is working with the Defense Acquisition Program Administration, which will complete its relocation to Daejeon by 2028, to promote the establishment of a public fabrication facility, R&D projects, and the nurturing of companies. It is also strengthening its talent base by fostering master's and doctoral-level experts through the KAIST Graduate School of Semiconductor Engineering and the Graduate School of Artificial Intelligence Semiconductor.

ETRI is conducting research on high-power gallium nitride (GaN) semiconductors for radar, guided weapons, and satellite communications, based on 30 years of accumulated compound semiconductor technology. This year, it was selected as the "Global TOP Strategic Research Group" for the development of strategic technologies for aerospace semiconductors.

Hanwha Systems plans to promote joint research and development for the localization of semiconductors, leveraging its technological expertise in developing the AESA (Active Electronically Scanned Array) radar for the next-generation KF-21 fighter jet and the SAR (Synthetic Aperture Radar) satellite.

Photo by Daejeon City

Seung-Chan Bang, Director of ETRI, emphasized, "Daejeon, where technology, capital, and talent are concentrated, is the place where the nation can most rapidly establish the urgently needed foundation for semiconductor development and supply."

Jae-Il Son, CEO of Hanwha Systems, stated, "As the largest consumer of defense semiconductors, we will actively participate in defense semiconductor policy and create synergy for the localization of defense semiconductors in collaboration with industry, academia, and research institutions in Daejeon."

Jang-Woo Lee, Mayor of Daejeon, said, "I hope that strategically important defense and space semiconductors will be developed and manufactured in Daejeon, protecting our proud nation and reaching out into space. We will actively support the establishment of a sustainable defense and space semiconductor ecosystem in Daejeon."