Busan is accelerating its bid to secure leadership in the next-generation power semiconductor industry. The city has simultaneously won two public project competitions from the Ministry of Trade, Industry and Energy (MOTIE), launching a "two-track strategy" to expand production and analysis infrastructure at once.
According to the Busan Metropolitan City on Tuesday, two projects spearheaded respectively by Busan Techno Park and the Pusan National University Industry-Academic Cooperation Foundation were selected for MOTIE's "Materials, Parts and Equipment Technology Development Infrastructure" program. The institutions will conduct research and development for up to four years starting this year. Each project is worth up to 10 billion won ($7.3 million), with 2 billion won provided in the first year for each.
The simultaneous selection of the two projects is seen as reaffirming the competitiveness of Busan, which has established itself as the nation's only power semiconductor specialized complex. The city plans to invest a total of 28.6 billion won ($21 million), including 20 billion won in state funds, to expand 8-inch compound semiconductor process infrastructure and foster a next-generation semiconductor ecosystem. Busan was previously designated as a "Second-Phase Materials, Parts and Equipment Specialized Complex" in 2023 and selected as a top-tier national specialized complex in 2025, earning recognition for its achievements across production, research, workforce and investment.
The "Compound Semiconductor Manufacturing Infrastructure for Extreme Environment and Polar Industries" project led by Busan Techno Park aims to build a production base for power semiconductors that operate reliably in extreme environments such as polar regions, space and defense. Targeting the establishment of a full 8-inch compound semiconductor manufacturing platform, the project will first introduce eight types of silicon carbide (SiC)-based core equipment and establish a standard process system. The city separately plans to invest a total of 40 billion won ($29 million) to complete a dedicated 8-inch SiC power semiconductor "Second Fab" by 2027 and introduce 14 additional types of process equipment.
The "Establishment of Infrastructure for Substrate Analysis of High-Efficiency Silicon Carbide (SiC) Power Semiconductors" project, led by the Pusan National University Industry-Academic Cooperation Foundation, focuses on securing quality competitiveness. The project will build an integrated analysis platform capable of everything from substrate defect analysis to design-manufacturing process verification, supporting the development of high-reliability products. Dong-Eui University and Busan Techno Park will jointly participate in the project, establishing five types of core equipment including defect inspection equipment and strengthening the corporate support system.
The investment is focused on upgrading the entire power semiconductor industry ecosystem by simultaneously enhancing production infrastructure and analysis capabilities. Particular attention is being paid to whether Busan can secure SiC-based technological competitiveness in the high-efficiency power semiconductor market, where demand is rapidly expanding in electric vehicles, renewable energy and defense.
"This selection goes beyond simply securing state funds, signaling that leadership in the power semiconductor industry lies in Busan," a city official said. "We will spare no financial or administrative support to establish Busan as a global power semiconductor hub city."
