The government said on the 10th that it will inject about 700 trillion won through 2047 to build domestic semiconductor plants. It also said it will expand state funding to ensure there are no disruptions in the supply of power and water needed for semiconductor production and will create special provisions in the Special Act on Semiconductors.
The Ministry of Trade, Industry and Energy said it announced "Semiconductor industry strategy in the age of artificial intelligence (AI)" at 2 p.m. at the presidential office. Minister Kim Jung-kwan said, "In the semiconductor manufacturing sector where we excel, we will provide all-around support for corporations' investments to maintain an unrivaled No. 1 lead, and we will expand the less competitive system semiconductors and fabless sector by tenfold."
The government said it will invest about 700 trillion won through 2047 to build the world's largest semiconductor cluster. There are currently 21 fabs (plants) for semiconductor production and research combined, and the plan is to add 16 to bring the total to 37. It will also expand state funding to supply power and water needed for semiconductor production in a timely manner. It will also create related special provisions in the Special Act on Semiconductors.
The government plans to invest 126.76 billion won through 2030 in the development and commercialization of NPUs (Neural Processing Units), known as next-generation semiconductors. An NPU is an AI Semiconductor that implements an artificial neural network used for AI training by mimicking the human brain. Among domestic corporations, FuriosaAI, Rebellions, and DeepX have developed or are pursuing the development of NPUs.
In addition, it decided to provide 360.6 billion won to secure advanced packaging technology. It will invest 215.9 billion won and 260.1 billion won, respectively, in next-generation memory and in compound semiconductor development, a core component for future cars and robots.
To strengthen the system semiconductor ecosystem, which is assessed as weak in Korea, the government will create the nation's first win-win fabless-foundry "win-win fab." In consultation with Samsung, SK keyfoundry, and DB HiTek, the government will build a 12-inch, 40-nanometer-class win-win foundry with a budget of 4.5 trillion won. The plan is for the government to support fabless development and commercialization at this plant.
It will also review establishing a "Korea semiconductor graduate university." Corporations will directly participate in operating the graduate university to train master's and doctoral talent.
The government will spread the semiconductor industry, which is currently concentrated in the greater Seoul area, to non-capital regions. To that end, specialized clusters for high-tech industries such as semiconductors will be newly designated only outside the capital area. It will also build a southern semiconductor innovation belt connecting Gwangju-Busan-Gumi. The plan is to provide related budget support so that Gwangju becomes an advanced packaging industrial complex, Busan becomes a specialized cluster for strategic semiconductor materials, parts, and equipment, and Gumi becomes a region where semiconductor materials and parts corporations cluster.
Meanwhile, President Lee Jae-myung presided over the "Briefing on the vision and development strategy for K-semiconductors in the AI age" on the 10th. Government official and industry officials from Samsung Electronics, SK hynix, Jusung Engineering Co., ASML Korea, Dongjin Semichem, Shinsung ENG, SK Siltron, FuriosaAI, Rebellions, DeepX, Mobilint, Telechips, Arm Korea, DB HiTek, Amkor Technology Korea, and Citi attended. From academia, officials from Seoul National University, Gachon University, the University of Seoul, the Korea Electronics Technology Institute, and the Korea Research Institute of Standards and Science (KRISS) were also present.