KTC Signs MOU to Foster Semiconductor Companies through the "Gyeonggi Semiconductor Innovation Network"
▲Group photo taken at the completion ceremony of the 'Semiconductor Industry Comprehensive Support Center'
On July 18th, Korea Testing Certification institute (KTC) announced the signing of an MOU for the establishment of the "Gyeonggi Semiconductor Innovation Network" (referred to as the Innovation Network). This collaborative effort involves 34 organizations, including the Gyeonggi-do Small and Medium Business Administration under the Ministry of SMEs and Startups, Gyeonggi-do, and KTC, the only domestic testing and certification organization participating in the initiative. Other participants include the Gyeonggi SMEs and Startups Agency, Gyeonggi local governments, the Korea Semiconductor Industry Association, the Korea Fabless Industry Association, the Korea PCB & Semiconductor Packaging Industry Association, as well as regional innovation agencies, universities, and research institutes.
The participating organizations have agreed to collaborate on various aspects, including operating the Network's consultative body, jointly implementing projects to nurture semiconductor companies, identifying on-site challenges and providing joint responses for workforce development, and sharing achievements and best practices to enhance support outcomes for the innovative growth of Gyeonggi's semiconductor SMEs.
The global market size for system semiconductors is projected to increase from $264 billion in 2021 to $339 billion in 2025, with the domestic market expected to grow from $9.9 billion in 2021 to $12.7 billion in 2025. The demand for system semiconductors is also expected to rise significantly due to the increasing market for autonomous vehicles. While internal combustion engine vehicles require around 300 system semiconductors and electric vehicles require around 1,000, autonomous vehicles require a staggering 2,000 system semiconductors. However, despite efforts by domestic companies to expand exports, they face difficulties in the semiconductor field due to rapidly changing trade policies that emphasize national priorities, such as the CHIPS Act introduced by the United States in August of last year.
To address these challenges and lower trade barriers (TBT) for Gyeonggi's semiconductor SMEs, KTC plans to provide support such as consulting for the development of new products and technologies, as well as assistance in acquiring overseas certifications. Furthermore, KTC will participate in the upcoming Network-wide meeting in September to discuss major issues, concerns, and policies related to semiconductors. In November, they will attend field meetings to address regulatory obstacles.
KTC is the largest cooperative organization for standard development in the electrical, electronic, and mechanical product fields in Korea. They possess the qualifications and expertise to establish practical systems in the module-system sector of major forward-looking semiconductor businesses, ranging from display, battery, future mobility, and robotics/AI to the bio sector. Through their tailored consulting and technical advice, KTC is expected to provide substantial assistance to Gyeonggi's semiconductor SMEs.
Sungil Ahn, President of KTC, stated, "Through this MOU, we aim to establish a cooperative system for the Gyeonggi semiconductor industry, a key development project in Gyeonggi-do, and contribute to regional innovation. We will devote our efforts to supporting SME exports and achieving mutual growth."
