Jeonnam-Gwangju should develop research, supplier and workforce networks alongside new semiconductor fabs if it wants the planned cluster to remain competitive over the long term, Germany’s economic counselor in Seoul said Thursday.
Dennis Bloch, counselor for economic affairs at the German Embassy in Seoul, made the remarks at the Jeonnam-Gwangju Integrated Special Metropolitan City Semiconductor and AI Transformation Global Forum in Gwangju. He drew on his experience of Silicon Saxony, Europe’s largest microelectronics and ICT cluster.
“Semiconductor clusters are built over decades,” Bloch said, noting that governments and political leadership change while research institutions, industry organizations and shared infrastructure can provide continuity.
Centered on Dresden, Silicon Saxony traces its microelectronics roots to 1961. The region now includes about 3,650 companies employing more than 82,000 people, while roughly one-third of chips produced in Europe come from the area, according to Bloch’s presentation.
The cluster is also expanding again. Major investments by Infineon and European Semiconductor Manufacturing Co., the TSMC-led joint venture in Dresden, are expected to bring roughly 20 billion euros ($23 billion) in new investment and create about 5,500 jobs, according to materials presented at the forum.
Bloch said the region’s strengths lie not only in large manufacturers but in the institutions and companies surrounding them. Specialized suppliers, universities and applied-research institutes, including the Fraunhofer network, have grown alongside the fabs. At the same time, the Silicon Saxony industry association connects more than 750 members across business, academia, research and the public sector.
“Big semiconductor projects are also about education policy, infrastructure policy and regional development policy,” Bloch said.
That broader industrial base, he said, is also what creates room for deeper cooperation with Korea.
The two countries bring different strengths to the semiconductor value chain. Korea is strong in memory chips, HBM, large-scale manufacturing and advanced packaging; Germany has capabilities in automotive and power semiconductors, sensors, industrial applications and specialized equipment.
“We can combine different strengths on the same value chain,” Bloch said.
Existing channels already provide a foundation. Bloch pointed to the Korea-EU Digital Partnership, bilateral digital dialogue and K-Fast, a Korea-Fraunhofer cooperation hub linking Korean companies with Germany’s applied-research network.
Nine joint R&D projects approved in 2024 and 2025 represent about 35 billion won ($25.9 million) in research, according to forum materials.
Bloch said further cooperation could grow around AI chips and advanced packaging, future mobility and data-center technologies, areas where Korean manufacturing strengths and German industrial and research capabilities can overlap.
For Honam, he said, the key is to build those connections around the fabs from the beginning rather than treating them as something to add later. “Look at the whole ecosystem and connect research with industrial demand,” he said. “I hope Germany can be a good partner for Honam’s new semiconductor cluster.”
mjh@heraldcorp.com