Special industrial complex would create new hub for semiconductor industry

Incheon is pushing to establish a specialized industrial complex focused on the development of semiconductors. [INCHEON METROPOLITAN GOVERNMENT]

Incheon plans to become a specialized industrial complex focused on the development of semiconductors and is submitting a proposal to the government’s Specialized Industrial Complex and Foundation Building funding program.

As a stepping stone to becoming Korea’s second largest city, Incheon is pushing to establish the new specialized industrial complex.

According to the Incheon Metropolitan government on Jan. 16, Incheon will submit a proposal in line with the government’s project to cultivate specialized complex related to semiconductor in February.

As the global economic climate has intensified due to the dual hits of the Covid-19 pandemic and the face-off between the United States and China, the government has announced a plan to create a specialized complex this year to help fund investment in advanced technologies and boost local industry by strengthening Korea’s position in global supply chains.

Semiconductor production is expected to be at the center of the specialized industrial complex program, and the government will announce the city to host the complex within the first half of this year.

The semiconductors industry is divided into memory semiconductors, non-memory semiconductors and semiconductor packaging. The latter sector is where Incheon has an edge around which it intends to build a specialized industrial complex.

Incheon is already home to Amkor Technology Korea, the world’s No. 2 semiconductor packaging company, and circuit manufacturing giant STATS ChipPAC. The city is also a major shipping hub, and semiconductors are its most common export.

Incheon’s plan to establish of a specialized industrial complex is centered on three areas, the Namdong National Industrial Complex, Songdo International City and Yeongjong International City.

The Namdong Industrial Complex, where companies are concentrated, will be home to the majority of manufacturing, with Research and Development (R&D) and manpower training in Songdo and the eventual development of a new semiconductor industrial complex in Yeongjong.

The Incheon government believes that the city is the most efficient spot to be designated as a specialized complex as relevant industries are already operating in the area. Incheon also has experience nurturing small businesses, unlike other competitive areas that are centered on big businesses.

“The number of semiconductor suppliers alone is the second-largest in the country, with 1,300 firms in Incheon,” said Cho In-kwon, executive director of economy and industry headquarters. “Yeongjong Island, where Incheon International Airport is located, will be raised as a high-tech industrial complex, Songdo as a mecca for manpower training and R&D and Namdong as a foothold for cultivating enterprises related to materials, parts and equipment industries.”

To date, about 70 semiconductors-related firms have submitted a letter of intent (LOI) to bid to promote the development of a specialized semiconductor industrial complex in Incheon. As the Ministry of Industry focuses on the integration of related industries, Incheon is putting it all on the line to win the bid.

The plan will result in large-scale job creation including building infrastructure for energy self-sufficiency, simulation centers for process innovation (CPI) and makerspaces. Following the development of biohealth clusters and maintenance, repair and overhaul facilities, Incheon expects the creation of new jobs as it expands its role in the semiconductor industry.

The development of quality jobs is needed for the city to become the second largest in Korea, a city official explained. The population of Incheon is expected to reach 2.967 million by 2035, surpassing the 2.959 million of Busan, according to the future population projection of Statistics Korea.

Incheon recorded 89.98 trillion won of real gross regional domestic product in 2021, ahead of Busan’s 87.9 trillion won, although it has lagged behind Busan before.

Incheon is also actively seeking to host the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in Korea in 2025, which could result in a total of 1.4383 trillion won in revenue and 114,000 new jobs. APEC is an annual forum where leaders of 21 economies in the Asia-Pacific region, including the United States, Canada, China and Japan, gather.

BY PARK YE-EUN [park.yeeun@joongang.co.kr]