South Korea’s Triumph in the Global Semiconductor Arena
South Korea’s small and medium-sized semiconductor material, component, and equipment companies are making a bold move by establishing their production facilities within the semiconductor cluster taking shape in Yongin, Gyeonggi Province. The anticipated tech hub, known as the Yongin Semiconductor Cluster, will be led by semiconductor supplier, SK Hynix.
The Yongin Semiconductor Cluster is a complex spanning 4,156,135 square meters in the Wonsam-myeon area of Cheoin-gu, Yongin City, with a dedicated industrial site covering 2,670,000 square meters specifically allocated for semiconductor material, component, and equipment companies. Leading domestic and international companies and SK Hynix partners have jumped on the trend of establishing their foothold within the clutter.
Among the notable companies that finalized their plans to enter the Yongin Semiconductor Cluster are Park Systems Corp., SoulBrain Co Ltd, RAM Technology, and Quality Reliability Technology Inc. (QRT).
On September 19, Park Systems, a distinguished provider of atomic force microscopy (AFM) instruments and nano-metrology solutions, announced that it has secured a factory premises spanning 13,216 square meters within the cluster. This expansion is driven by the company’s substantial increase in order volume, necessitating the expansion of its leased space in Suwon for a boost in production capacity and efficiency.
AFM is a technology that enables precise measurements of objects at the nanometer (nm) scale, which is equivalent to exactly 1 billionth of a meter. Especially with extreme ultraviolet (EUV) processes and the miniaturization of semiconductor circuit widths becoming more prevalent in the industry, the adoption of AFM has been gaining momentum among leading semiconductor companies around the world.
In 2022, Park Systems generated approximately $84.7 million in AFM revenue, and are expected to continue dominating the market in 2023, with an anticipated 29% market share. Park System is followed by revenues of $78.4 million and $38.1 million by competing players in 2022.
Park Systems recently announced that the construction of its Gwacheon headquarters is underway, slated for completion by 2026. With an investment of KRW64.2 billion, its Gwacheon HQ will cover 6,074 square meters, serving as a prelude to the company’s forthcoming establishment within the Yongin Semiconductor Cluster in the following year.
“The decision to expand our facilities is driven by a substantial increase in orders due to the diversification of our industrial AFM product offerings,” stated a representative from Park Systems. Park Systems plans to occupy its Yongin production facility as early as 2027, marking a strategic move that strategically reduces dependence on core component suppliers and solidifies its role within the semiconductor ecosystem.
SoulBrain, a South Korean semiconductor material company, has secured a 21,141 square-meter area in the Yongin Semiconductor Cluster, underscoring its commitment to the growing tech hub. SoulBrain is known for supplying various chemical materials essential for semiconductor key processes, such as etchants, cleaning agents, CMP slurries, and precursors, contributing to the stable supply of semiconductor components.
RAM Technology, a specialist in chemical materials for semiconductor processes, is on the path to establishing a new factory spanning 14,656 square meters within the Yongin Semiconductor Cluster. This expansion project, with a total investment of KRW55.5 billion, includes new facility investments and is set to be completed by the end of 2028. Ram Technology produces essential chemical materials for the semiconductor and IT industries, particularly in the field of micro-etching agents.
QRT, a provider of semiconductor reliability assessment and defect analysis services, has acquired approximately 7,570 square meters of land in the Yongin Semiconductor Cluster, investing approximately KRW8.9 billion. QRT focuses on semiconductor reliability assessments and comprehensive analyses, with its products recognized in 95 countries worldwide. With its presence in the Yongin Semiconductor Cluster, QRT anticipates the provision of rapid semiconductor assessment and analysis services, further bolstering the diverse capabilities of the cluster.