Korea's semiconductor industrial park to be built in Pangyo, Korea's Silicon Valley

[Source: Korea Semiconductor Industry Association]

Pangyo, South Korea’s hub for technological innovation that is also dubbed Korea’s Silicon Valley, is expected to be called home for about 100 semiconductor companies committed to the development of next-generation semiconductor technologies.

A total of 41 chip designers, developers and manufacturers and their suppliers are willing to be located in a future industrial complex near Geumto-dong, Seongnam in Gyeonggi Province, which is being floated as the third Pangyo Techno Valley, according to the survey from Korea Semiconductor Industry Association (KSIA). Of these companies, 25 are fabless firms and one is a mid-sized foundry.

The 41 KSIA members plan to invest 4.24 trillion won ($3.26 billion) in total for five years to build a next-generation semiconductor technology cluster in the third Pangyo Techno Valley, which is expected to create 6,618 new jobs in the area.

To meet the demands of their business expansion, a combined 68,000 square meter site will be needed. The industry association is in consultation with the provincial government and other related agencies based on its survey results.

The new semiconductor complex in Pangyo should become a technology hub for the Korean semiconductor industry beyond its function as a base for key IT and gaming companies. About 50 major Korean semiconductor SMEs, including Telechips, Soulbrain, and Dongjin Semichem, are already located or preparing to move into Pangyo. After the completion of the third complex in the region, more than 100, half of the country’s semiconductor companies, will be nestled in the city.

The Korean government and Gyeonggi Province plan to establish a comprehensive semiconductor ecosystem in the third Pangyo Techno Valley to help tenant companies perform training, R&D and business activities in one place based on the consultations with companies.

The province is conducting commissioned research on land access and development on its own. The industry expects that the semiconductor industrial complex will be completed as early as in 2024 if the development plan is finalized in the second half of this year.

The third Pangyo district will be built with a total size of 560,000 square meters. Most of the site will be allocated for residential development and about 99,000 square meters for industrial use.

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