Sobu-jang (Materials, Components, and Equipment) Specialized Complex
Overview
The Sobu-jang Specialized Complex (Materials, Components, and Equipment Specialized Complex) is an industrial cluster designated by the government to raise supply chain stability and the degree of technological self-reliance by concentrating, on a regional basis, companies in the materials, components, and equipment sectors of core industries such as semiconductors, displays, and secondary batteries. It was pursued in the wake of Japan's 2019 export restrictions on semiconductor materials; in 2021, specialized complexes in seven fields were designated for the first time, and in 2023 the policy was expanded and reorganized into National Advanced Strategic Industry Specialized Complexes.
Key Details
Background
In July 2019, when Japan imposed restrictions on exports to Korea of three items — hydrogen fluoride, photoresist, and fluorine polyimide — Korean industry came to feel keenly the vulnerability of supply chains dependent on specific countries. Under the goal of fostering the materials, components, and equipment industry as a "second semiconductor" industry, the government announced the "Materials, Components, and Equipment 2.0 Strategy" in 2020, and pursued the creation of specialized complexes as a means of realizing economies of scale through corporate clustering and shared infrastructure. There was also a strong aim to resolve the difficulties of small and medium-sized materials companies whose demonstration and mass-production facilities were scattered.
Designation Status
In July 2021, the Ministry of Trade, Industry and Energy designated specialized complexes in seven fields: semiconductors (Yongin, Hwaseong, Pyeongtaek, and Icheon in Gyeonggi; Cheongju in North Chungcheong), displays (Cheonan and Asan in South Chungcheong), secondary batteries (Cheongju in North Chungcheong, Wanju in North Jeolla, Gumi in North Gyeongsang, and Ulsan), automobiles, electrical and electronics, machinery and metals, and basic chemicals. Subsequently, in 2023, "National Advanced Strategic Industry Specialized Complexes" targeting national advanced strategic industries such as semiconductors, displays, secondary batteries, defense, and hydrogen were additionally designated, and the policy axis was integrated and reorganized.
Support
Once designated as a specialized complex, resident companies receive benefits such as preferential treatment in research and development (R&D) projects, tax and financial support, expedited licensing, infrastructure development including industrial land, power, and water, and the construction of shared demonstration and testing/analysis equipment. The key point is that specialized research institutes and testbeds for materials, components, and equipment are established alongside, enabling small and medium-sized enterprises to jointly use expensive analysis and evaluation equipment. In addition, matching of cooperation projects between large demand-side companies and small supplier companies, along with workforce training programs, is carried out in parallel.
Achievements and Limitations
There is an assessment that the domestic production rate of key materials has risen and that supply chain diversification has progressed. On the other hand, it is pointed out that dependence on foreign sources for advanced process materials and equipment remains high, and that there are gaps between complexes in the speed of attracting companies and in the actual clustering effect. Land compensation, delays in connecting to the power grid, and regional labor shortages are cited as typical difficulties.
Latest Trends
In 2024, the government announced the "Semiconductor Mega Cluster" initiative centered on the Yongin Semiconductor National Industrial Complex and revealed plans to attract materials, components, and equipment companies on a large scale. In the second half of the same year, measures to strengthen the competitiveness of the materials, components, and equipment industry were announced, setting out an expansion of R&D budgets, advancement of a supply chain early warning system, and a localization roadmap for items dependent on foreign sources. In 2025, major tasks under discussion include linked operation of advanced strategic industry specialized complexes and Sobu-jang specialized complexes, early groundbreaking for power and water infrastructure, and support for the use of artificial intelligence (AI)-based process data. In addition, in response to supply chain restructuring centered on the United States and China and to changes in tariff policy, there is a growing emphasis on joint research and production cooperation with allied countries — so-called "friendshoring"-type complex linkages — going beyond simple reduction of dependence on specific countries. Competition among local governments to secure additional designations of specialized complexes also continues, and demands for transparency in selection criteria and for verification of actual results are growing alongside it.
Related Topics
- [[Materials, Components, and Equipment]]
- [[National Advanced Strategic Industry Specialized Complex]]
- [[Semiconductor Mega Cluster]]
- [[Supply Chain Stabilization]]
- [[Ministry of Trade, Industry and Energy]]