The government said on the 10th it will inject about 700 trillion won by 2047 to build domestic semiconductor plants. It also said it will expand state funding to ensure there are no disruptions to power and water supplies needed for chip production and create special exceptions in the special act on semiconductors.
The Ministry of Trade, Industry and Energy said it announced "Strategy for the semiconductor industry in the age of artificial intelligence (AI)" at 2 p.m. at the presidential office. Minister Kim Jung-kwan said, "In semiconductor manufacturing, where we excel, we will provide all-around support for corporations' investment to maintain the world's No. 1 lead, and we will grow the less competitive system semiconductors and fabless sector by tenfold."
The government said it will invest about 700 trillion won by 2047 to build the world's largest semiconductor cluster. There are currently 21 fabs (plants) for semiconductor production and research combined, and it plans to add 16 to bring the total to 37. It will also expand state funding to supply power and water needed for chip production in a timely manner. It decided to establish related special exceptions in the special act on semiconductors.
The government plans to invest 126.76 billion won by 2030 to develop and commercialize 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 in next-generation memory and 260.1 billion won in compound semiconductors, core components for future vehicles and robots.
To strengthen the system semiconductor ecosystem, which is assessed as weak in Korea, the government will create the nation's first "co-prosperity fab" linking fabless and foundry. In consultation with Samsung, SK keyfoundry, and DB HiTek, the government will build a 12-inch, 40-nanometer-class co-prosperity foundry with a total value of 4.5 trillion won. The government plans to support development and commercialization by fabless firms at this plant.
It will also review establishing the "Korea Semiconductor Graduate School." Corporations will directly participate in running the graduate school to train master's and doctoral talent.
The government will expand the semiconductor industry, currently concentrated in the greater Seoul area, to non-capital regions. To that end, specialized complexes for advanced industries, including semiconductors, will be newly designated only in non-capital regions. It will also build a southern semiconductor innovation belt linking Gwangju-Busan-Gumi. It plans to fund related budgets so that Gwangju becomes an advanced packaging industrial complex, Busan a specialized complex for strategic semiconductor materials, parts, and equipment, and Gumi a region where semiconductor materials and parts corporations gather.
Meanwhile, President Lee Jae-myung presided over a briefing on "Vision and development strategy for K-semiconductors in the AI era" on the day. Government official attendees and industry figures included Samsung Electronics, SK hynix, Jusung Engineering Co., ASML Korea, Dongjin Semichem, Shinsung ENG, SK Siltron, FuriosaAI, Rebellions, DeepX, Mobilint, Telechips, Arm Korea, DB HiTek, and Citigroup. From academia, representatives attended 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).