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Incheon ‘K-Semiconductors Mecca’ to Be Developed as a Specialized Industrial Complex

Establishment of the shared infrastructure for thepost-processing of semiconductors; setting up a semiconductor’s fund, etc.

Incheon started its journey to develop the foundations to ascend as theMecca of K-semiconductors.

The city reviewed the candidate sites among the clusters of semiconductorcompanies in Songdo International City and Namdong National Industrial Complexto proceed with the development of a specialized industrial complex whichfocuses on the ‘post-processing of semiconductors.’

Incheon plans to establish a specialized industrial complex developmentplan with experts and submit a proposal for the central government’s ‘SpecializedIndustrial Complex and Foundation Building’ program funding.



Incheon will review the candidate sites among theclusters of semiconductor companies in Songdo International City and NamdongNational Industrial Complex, etc., to proceed with the development of aspecialized semiconductor industrial complex focusing on the ‘post-processing’industries for semiconductors. The images show the equipment for semiconductorindustries.

In line with the government’s policy to cultivate semiconductor industry,local governments are competing each other to be selected as the site for thespecialized semiconductor industrial complex. Incheon’s strategy to win in thiscompetition is to establish a foundation to become the Mecca of thesemiconductor industry emphasizing its potential and possibility for growth asa specialized city for the semiconductor industry.

The total market volume of the semiconductor industry of the world was555.9 billion dollars (about 665 trillion won) in 2021, breaking its recordwith a 26.2% growth from 440.4 billion dollars of 2020. The volume of SouthKorea’s semiconductor export in 2021 broke the record with USD 129.7 billiondollars (154 trillion won), up by 29% from the preceding year (99.2 billiondollars).

The “Special Act on the Strengthening of the Competitiveness of theNational Strategic Advanced Industries and Their Protection,” which isscheduled to take effect starting from August 4th, contains the provisions onthe bold support programs including infrastructures and manpower to thenational strategic advanced industries, including semiconductors. If Songdo andNamdong Industrial Complex are designated as the semiconductor-specializedcomplexes, they become eligible to government supports and special benefits,such as fast-track permit processing, infrastructure building, tax benefits,and manpower training.

Why Incheon?
Anchor companies in post-processing sectors, no. 1 export industry,transportation and industrial hubs, and other qualification criteria aresatisfied.

One of the key promises Mayor Yoo Jeongbok made during his campaign was todevelop Incheon as the Mecca of semiconductor packaging.

While staying in line with the government’s policy to ‘make the countrystronger in the field of semiconductors,’ the city plans to become thecenterpiece of semiconductor industry with a differentiated strategy that is to‘build a region-specialized ecosystem.’

semiconductors is the top export item of the city, and the growth ofexport is driven by system semiconductors.

The share of semiconductors in total export last year was 26.5% (12.2billion dollar), which was higher than the second in place, automobile, by17.8% (8.7%, 3.97 billion dollars). The total export volume of semiconductorsgrew by 69.8% from the preceding year (7.1 billion dollars), further strengtheningits position as Incheon’s top export item.

Especially in the case of Incheon, system semiconductors accounted for 94%of the total semiconductors export, indicating that the city has a higherpotential in the system semiconductors sector, where South Korea is relativelyweak.


While staying in line with thegovernment’s policy to ‘make the country stronger in the field ofsemiconductors,’ the city plans to become the centerpiece of semiconductorindustry with a differentiated strategy that is to ‘build a region-specializedecosystem.’

Semiconductors are divided into memory semiconductors and non-memorysemiconductors (system semiconductors). South Korea’s market share in the‘memory semiconductors’ sector is 53.2% of the total world market, making it anunrivaled top player. However, its share in the system semiconductors sector isan ignorable 3%.

Also, the world’s second and third largest companies such as Amkor Korea, STATSChipPACKorea, and other post-processing (packaging and testing) companies, as well as1,264 global semiconductors equipment companies are located in Incheon. Inaddition, the city has a free economic zone, aviation and logisticsinfrastructure, universities, research labs, and other environmental elementsthat are optimal for global companies and investment inducement.

The Strategy of Incheon to Become the Mecca of‘K-semiconductors
Establish an ecosystem that is sustainable through the development ofspecialized talents, funds, and strategic R&D of Incheon.

Incheon plans to embark on the project to establish the sharedinfrastructure for the post-processing of semiconductors starting from the nextyear to enhance the technological capabilities for advanced packaging.

The plan includes the establishment of the measurement, analysis, andtesting equipment that can be shared by the semiconductors post-processingcompanies to support their standard certification and development of coretechnologies. Also, they plan to utilize the experts and infrastructures ofgovernment-funded labs and the regional innovation organizations for theirprogram to support the development and research activities for semiconductormaterials, components, and equipment companies.

In addition, the city plans to establish a 20-billion-won fund forsemiconductors to promote the growth of the promising small or medium-sizedcompanies.

Incheon will invest two billion won into this fund, and VCs, parent funds,private businesses, and other players in the private sector will be investingeighteen billion won, totaling twenty billion won to be invested into thissemiconductors fund, which will then be used to cultivate and identify theunicorn companies in the semiconductors that have global competitiveness.



Incheon plans to develop a sustainable ecosystem throughR&D supports, training of experts, and establishing a fund to develop aK-semiconductors Mecca.

In addition, the city will work with the universities in the area to trainthe customized workers for semiconductors companies while focusing on thedevelopment of a semiconductors ecosystem that is sustainable andwell-structured.

First, the city will engage in its ‘Semiconductor-Major Track’ program torun the major tracks for elements and designing majors and thematerials/process/equipment major tracks, as it train versatile talents who cancover both the pre and post-processing of system semiconductors.

With the “Semiconductors Infrastructure Utilization Field WorkersTraining’ program, the city will be leveraging on the semiconductorsinfrastructure in universities to run the technological capability enhancementtraining programs based on the demands among the materials, components, andequipment companies in semiconductor sectors to enhance the practical skills ofthe current workers while matching the employers and skilled job seekers in thefield.

The city will also work with Incheon Office of Education to encourage thestudents of vocational high schools to grow into various types ofintermediate-level workers in semiconductor industries by building a careergrowth path connecting vocational high schools, companies (hire-first) –universities (teach-later).

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