Samsung Electronics, SK hynix and other semiconductor corporations, along with academia and research circles, collectively urged the creation of an AI semiconductor promotion committee under the president.
The National Academy of Engineering of Korea Semiconductor Special Committee (hereafter the Semiconductor Special Committee) held a forum on the 17th at the Josun Palace in Sogong-dong, Seoul, under the theme "Guidelines for a leap to a strong AI Semiconductor nation." Ahn Hyeon, SK hynix head of development (president) and co-chair of the Semiconductor Special Committee, and Park Jae-hong, CEO of Boss Semiconductor and a Commissioner of the Semiconductor Special Committee, shared problems experienced in the field and proposed solutions. From academia, Lee Hyuk-jae, Seoul National University professor (co-chair of the Semiconductor Special Committee), Ryu Su-jeong, Seoul National University professor (former Sapeon Korea CEO), Kwon Seok-jun, Sungkyunkwan University professor, and Baek Gwang-hyun, Chung-Ang University professor, presented measures for the development of the semiconductor industry.
Kim Ki-nam, Samsung Electronics executive adviser (former CEO); Ko Dong-jin, People Power Party lawmaker (former Samsung Electronics CEO); Jeong Eun-seung, Samsung Electronics adviser (former head of the foundry division); Lee Jeong-bae, Samsung Electronics senior adviser (former head of the memory division); and Choi Si-young, Samsung Electronics senior adviser (former head of the foundry division), were among many former senior Samsung executives in attendance.
After 10 months of discussion, the Semiconductor Special Committee selected "10 key tasks in five major areas" deemed necessary for industrial development. The "Guidelines for a strong K-AI Semiconductor nation" announced that day included: ▲ operating a governance body to push semiconductor promotion policy, the "AI semiconductor promotion committee under the president" ▲ establishing an "AI Semiconductor Institute" to consolidate public and private research capabilities ▲ creating a "semiconductor expert" (Doctor of Chip) system ▲ expanding military service exemptions and compensation for semiconductor researchers ▲ building a "K-AI integrated ecosystem" connecting manufacturing, design and service ▲ developing domain-specific AI semiconductors for the public sector (defense, power, etc.) ▲ supporting the commercialization of On-device AI (technology that performs AI functions on the device itself without server connection).
Ahn Gi-hyeon, executive director at the Korea Semiconductor Industry Association, said, "To achieve a strong semiconductor nation, nine guidelines are needed, and to carry them out, it means a presidential committee for promotion must be put in place."
Lee Jeong-bae, Samsung Electronics senior adviser, said that if the "Guidelines for a strong K-AI Semiconductor nation," consisting of 10 key tasks, are realized, "AI Semiconductor exports could surpass $120 billion (about 178 trillion won) annually by 2035." "It is a way to strengthen technology sovereignty and national security," Lee said.
In response, lawmaker Ko Dong-jin said, "We have prepared a special semiconductor law, passed The National Assembly's Legislation and Judiciary Committee, and now are only waiting for the plenary session," adding, "Once the bill passes, a presidential AI semiconductor special committee will begin operating. The bill also includes provisions on military service exemptions and financial support."
◇ "Excluding memory, we are followers… Government-led integrated operation is needed"
At the forum, participants also assessed the current semiconductor market and proposed various ways to secure competitiveness. Seoul National University professor Lee Hyuk-jae said, "AI Semiconductor is a strategic asset that will shape future industries beyond a simple technology component," adding, "The AI Semiconductor market is forecast to grow about ninefold to $775 billion (about 1,147 trillion won) by 2035 compared with 2024, but in Korea, except for the memory field, commercialization experience and ecosystem infrastructure remain at an early stage, which is a problem."
Ahn Hyeon, SK hynix president, said, "Korea's semiconductor industry is in serious trouble, and the sense of crisis is more severe than ever," adding, "In the United States, Big Tech is leading vertical (specialized for specific industries and tasks) AI, and China is also driving to secure AI Semiconductor competitiveness at the government level. By contrast, Korea is effectively a follower except for competitiveness in memory."
Ahn added, "Korea's AI ecosystem also holds diverse technologies and industries, but each field is fragmented and separated, fighting alone, which makes it hard to secure scale competitiveness," and said, "The government should integrate and operate related industries to build a national-level Virtual Big Tech ecosystem and leap to become a global AI power."
Seoul National University professor Ryu Su-jeong also said, "Excluding memory, Korea is generally assessed to be weak in competitiveness in the AI Semiconductor field," adding, "Capabilities in foundational processors such as graphics processing units (GPU) and Neural Processing Unit (NPU), which can be considered the core of AI Semiconductor, are quite lacking, and in software as well, weak competitiveness stems from insufficient demand for AI services." Ryu continued, "The ecosystem will be revitalized only if we provide more optimization opportunities not only for core hardware that runs AI but also for software areas such as AI services."
Chung-Ang University professor Baek Gwang-hyun said, "Right now, talent is concentrating on medical schools, but if AI Semiconductor becomes a 'ladder of wealth,' the manpower shortage can also be solved. Confidence in receiving sufficient compensation will motivate talent to enter the semiconductor field," and proposed, "Even when corporations want to compensate high performers or long-tenured employees with stock options, they must convene a general shareholders' meeting. Korea is also the only country where taxation occurs at the time of exercise, and this compensation system needs to be revamped."
Boss Semiconductor CEO Park Jae-hong reviewed semiconductor industry support policies in key countries such as the United States, China, the European Union (EU), Japan and Taiwan, and said, "We should examine other countries' support policies and prepare support measures suited to Korea's reality."