Busan is good

Busan Selected for Two Ministry of Trade, Industry and Energy Power Semiconductor Projects… Secures KRW 20 Billion in National Funding

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Busan Metropolitan City (Acting Mayor Kim Kyung-duk) announced that two projects—“Establishment of Manufacturing Infrastructure for Compound Semiconductors for Extreme Environment Applications” led by Busan Technopark, and “Establishment of Substrate Analysis Infrastructure for High-Efficiency Silicon Carbide (SiC) Power Semiconductors” led by the Industry-Academic Cooperation Foundation of Pusan National University—have been finally selected as of April 30 under the Ministry of Trade, Industry and Energy’s “Materials, Parts, and Equipment Technology Development Infrastructure Program.”

The call for proposals was open from March 11 to April 9, 2026, and the total research and development period runs for up to four years from 2026 to 2029. Government R&D funding amounts to up to KRW 10 billion per project, with KRW 2 billion allocated in the first year.

This simultaneous selection is particularly meaningful as it reaffirms Busan’s competitiveness as the nation’s only specialized complex for power semiconductors and secures a foundation for leading the global power semiconductor market.

The city plans to invest a total of KRW 28.6 billion, including KRW 20 billion in national funding and KRW 8.6 billion in municipal funding, to expand 8-inch compound semiconductor process infrastructure over the next four years starting this year, and to accelerate the development of a next-generation semiconductor ecosystem.

Meanwhile, since being designated in July 2023 as a second-phase specialized complex for the materials, parts, and equipment industry by the Ministry of Trade, Industry and Energy, Busan has built production infrastructure, advanced R&D, cultivated skilled personnel, and attracted corporate investment. These achievements led to its selection in 2025 as an outstanding specialized complex for the materials, parts, and equipment industry nationwide.

The “Establishment of Manufacturing Infrastructure for Compound Semiconductors for Extreme Environment Applications” project aims to build a full-process manufacturing platform for 8-inch compound semiconductors to enable stable production of power semiconductors that can operate reliably even in extreme environments.

To achieve this, eight key pieces of new equipment for silicon carbide (SiC) compound semiconductor manufacturing will be installed, and standardized processes will be established for companies by leveraging Busan Technopark’s workforce, process technologies, and data.

In addition, the city plans to invest a total of KRW 40 billion to complete a second fab dedicated to 8-inch SiC power semiconductor production by 2027 and introduce 14 process equipment units. Through this project, an additional eight core equipment units will be secured to strengthen the foundation for high-reliability power semiconductor technologies capable of operating in extreme environments such as polar regions, space, and defense applications.

The “Establishment of Substrate Analysis Infrastructure for High-Efficiency Silicon Carbide (SiC) Power Semiconductors” project aims to support the development of high-quality power semiconductors by building an integrated analysis platform that enables everything from substrate defect analysis to design-manufacturing process linkage and verification.

Pusan National University, Dong-Eui University, and Busan Technopark will collaborate to introduce five key pieces of equipment, including substrate defect inspection systems, and establish advanced analysis infrastructure to support related companies.

Kim Kyung-duk, Acting Mayor of Busan Metropolitan City, stated, “The simultaneous selection of these two projects by the Ministry of Trade, Industry and Energy goes beyond simply securing national funding. It is a clear signal that leadership in Korea’s power semiconductor industry lies with Busan.” He added, “The city will spare no effort in providing financial and administrative support to firmly establish Busan as a global hub city for next-generation power semiconductors.”