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Busan’s Power Semiconductor Specialized Complex Selected as a “National Excellence” Cluster, Advancing Toward Becoming a Global Leader in Next-Generation Power Semiconductors

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Busan Metropolitan City (Mayor Park Heong-joon) announced today (the 16th) that the Busan Power Semiconductor Specialized Complex was selected as a nationally outstanding specialized complex at the “2025 Materials, Parts and Equipment Specialized Complex Performance Sharing Conference” hosted by the Ministry of Trade, Industry and Energy (Minister Kim Jeong-gwan).

This selection officially recognizes the achievements made since the complex was designated as a “Second-Phase Materials, Parts and Equipment Specialized Complex” by the central government in 2023.

In this evaluation, the Busan specialized complex received high marks for the establishment of an 8-inch silicon carbide (SiC) power semiconductor production infrastructure; R&D achievements in 1.7-kilovolt (kV)-class mobility compound semiconductors; professional workforce training for incumbent employees; attraction of investments from leading (anchor) companies; and metropolitan-level cooperation.

In particular, the evaluation positively noted Busan’s step-by-step creation of favorable conditions for materials, parts, and equipment supply chains and corporate attraction through the designation of an Opportunity Development Zone in December 2024 and a Distributed Energy Special Zone in November 2025. Other contributing factors included agreements with leading (anchor) companies such as SK Powertech Co., Ltd. and JMJECO Co., Ltd.; the attraction of next-generation power semiconductor manufacturing companies including iQLab Co., Ltd.; and achievements in global exchange and cooperation, such as hosting the International Conference on Silicon Carbide and Related Materials (ICSCRM) domestically for the first time.

Now in its second year, the Busan Power Semiconductor Specialized Complex is demonstrating tangible achievements across various areas, including research and development, workforce training, and corporate investment attraction.

In the research and development field, the city completed the establishment of intellectual property R&D (IP R&D) strategies through the Korean Intellectual Property Office to support the global market entry of lead and participating companies. It is also exploring demand-linked cooperative projects with specialized complexes in Daegu (electric vehicle motors) and Gwangju (autonomous vehicles).

Busan is currently promoting basic and detailed design services for the establishment of a dedicated 8-inch silicon carbide (SiC) power semiconductor production facility. It is also continuing proactive investment efforts, including increasing the project budget by KRW 9.2 billion to introduce integrated process equipment for the first and second project years (10 types) and to advance production facilities.

In addition, Busan is training 120 incumbent professional technical personnel annually. Through the regional semiconductor-specialized university initiative and the comprehensive power semiconductor technical support program, the city is fostering a total of 1,110 compound semiconductor specialists each year.

Other major achievements include the opening of a fabless academy through a business agreement to build a Busan-based fabless ecosystem, and the promotion of international compound semiconductor exchanges between Busan and Nagoya, Japan, thereby strengthening industrial and technological capabilities in power semiconductors.

Fabless refers to a semiconductor company that specializes in semiconductor design without directly manufacturing semiconductor products.

In the area of corporate investment attraction, the specialized complex achieved a 41 percent increase in total investment compared to the previous year. This was driven by the expansion of mass production facilities worth KRW 70 billion by SK Powertech Co., Ltd.; the completion of iQLab Co., Ltd.’s headquarters and production facilities worth KRW 100 billion; and the groundbreaking of Nature Flower Semiconductor Co., Ltd., involving an investment of KRW 10 billion.

Meanwhile, with the goal of becoming a southern regional hub city for next-generation power semiconductors leading the future mobility industry, Busan plans to invest a total of KRW 400 billion by 2030, centered on the Dongnam Radiation Medical and Science Industrial Complex in Gijang-gun (1.48 million square meters, approximately 450,000 pyeong).

As a first step, KRW 60 billion has been invested in support projects, including the establishment of a dedicated 8-inch silicon carbide (SiC) power semiconductor production facility, the development of core high-efficiency compound semiconductor technologies, and workforce training initiatives.

Busan also plans to foster and cluster the next-generation power semiconductor industry around the specialized complex through cooperation among power semiconductor manufacturers such as SK Powertech Co., Ltd. and iQLab; leading (anchor) companies including JMJECO, Hyosung Electric Co., Ltd., and STI Co., Ltd.; and more than 50 regional upstream and downstream companies.

In the mid- to long term, the city plans to gradually pursue the creation of a “Global Hub City for Next-Generation Power Semiconductors” by establishing mass-production fabs for companies, a corporate support center, and a power semiconductor research and development center.

Mayor Park Heong-joon stated, “This selection as an outstanding specialized complex is a meaningful achievement that externally recognizes Busan’s efforts to foster the power semiconductor industry,” adding, “We will continue to work closely with the central government to promote the development of the next-generation power semiconductor industry and technological self-reliance, and contribute to the advancement of Korea’s materials, parts, equipment, and semiconductor industries by discovering new industries that leverage Busan’s unique strengths, including marine semiconductors.”