Vice Minister Heo Jang: "Securing World-Leading MCE Technology Key to Success of Three Mega Projects"(Comprehensive)

Heo Jang, the Second Vice Minister of Economy and Finance, emphasized on August 6, "A world-class ecosystem of materials, components, and equipment is absolutely essential for the success of the three major megaprojects: semiconductors, data centers, and physical AI (artificial intelligence)."

Heo Jang, Second Vice Minister of Economy and Finance, stated, "As the competition for technological supremacy intensifies and countries prioritize their own supply chains, the strategic importance of materials, components, and equipment has grown significantly." He added, "We must go beyond simply localizing production and substituting imports—securing leading technologies and taking the initiative in shaping the industries of the future are critical." He further emphasized, "With persistent uncertainty in the Middle East, building a stable supply chain is more important than ever."

Vice Minister Heo explained, "The government turned the 2019 Japanese export restrictions into an opportunity, cultivating the materials, components, and equipment industries as the core foundation of national competitiveness." He stated, "While we will meticulously monitor the short-term situation, we also plan to proactively respond from a long-term perspective. For key supply chain items, we aim to improve structural vulnerabilities through phased policy measures such as promoting domestic production, stockpiling, building overseas production bases, and diversifying import sources."

At the meeting, topics discussed included: approval of a materials, components, and equipment cooperation model; the selection of the third-term ‘Super Eul’ projects; and the implementation plan for enhancing competitiveness in materials, components, and equipment for 2026. The approved cooperation models this time feature two ecosystem-complete projects (such as next-generation glass package substrates and 1,000W-class EUV pellicles), one region-driven project (a factory-customized mobility platform), and two general projects (domestically produced SoC for automotive infotainment and ultra-high-performance porous carbon for energy applications).

The cooperation model for materials, components, and equipment is a project in which both demand and supply companies jointly develop and commercialize core technologies. The government will support selected projects with a total of KRW 9.1 billion in research and development (R&D) funding over the next five years, as well as with regulatory exemptions, policy financing, tax support, and demonstration evaluations.

Notably, starting this year, in addition to the existing general cooperation model, two new types have been established: the ‘ecosystem-complete’ model, where anchor companies directly design the supply chain ecosystem, and the ‘region-driven’ model, which strengthens connections between specialized clusters. This expansion creates three distinct types of cooperation models. Through this, the government expects to build a robust supply chain ecosystem and generate synergy effects among regional clusters.

For the third-term 'Super Eul' companies, five firms were selected: Hanwha Ocean, Sunic System, EO Technics, Ecopro BM, and Doosan Electronic. These companies aim to secure world-class technologies in areas such as core equipment for submarine fuel cells, AI-based OLED autonomous deposition equipment, ultra-fast laser annealing systems, sulfide-based solid electrolytes for all-solid-state batteries, and low-loss materials and antenna modules for satellite communications.

The 'Super Eul' project is a major R&D initiative designed to foster key materials, components, and equipment companies that will lead the global supply chain. Selected firms receive up to KRW 20 billion in R&D support per project across more than seven years. The government’s goal is to nurture a total of fifteen 'Super Eul' companies by 2030.

Finally, to strengthen the implementation of materials, components, and equipment policies, the government has prepared the “2026 Action Plan for Enhancing Materials, Components, and Equipment Competitiveness.” The plan is to focus R&D capabilities on four innovative and challenging technologies and select three specialized clusters to expand the number of core hubs for materials, components, and equipment industries.

Vice Minister Heo stated, "In an era where technological supremacy and supply chain restructuring are accelerating, competitiveness in materials, components, and equipment forms the core foundation of our industrial future. By securing key technologies and fostering a strong industrial ecosystem, we will establish a supply chain resilient to external shocks."

This content was produced with the assistance of AI translation services.