South Korea is pushing to disperse its semiconductor production base beyond the capital area, but simply moving fabs may deliver limited results, industry voices say. The government plans to allocate over 40 percent of its National Growth Fund to non-capital regions and offer special subsidies to relocating materials, parts and equipment firms. Officials also aim to build regional specialisation, but supply-chain depth, engineers’ response times, power costs and local settlement conditions are seen as decisive.

South Korea\'s battery supply chain is facing a test as the European Union\'s digital battery passport mandate approaches next year. Major cell makers have set up response systems, but many small materials suppliers lack IT systems and specialist staff to measure carbon emissions. Carbon data for the passport requires lifecycle assessment information from multiple tiers of suppliers. Industry groups say small and mid-sized firms lack expertise, budget and manpower, widening gaps with large companies.