Leading scholars in the engineering field gathered to diagnose the semiconductor industry's crisis and find solutions. The Korean Academy of Engineering held a presentation on the research results of its Semiconductor Special Committee at the Shilla Hotel in Seoul on the afternoon of the 18th.
The Academy launched the Semiconductor Special Committee in February to analyze the current status and policies of the domestic semiconductor industry ecosystem and to propose strategies for enhancing technological competitiveness and leading the industry. The committee includes scholars from the engineering sector and experts from the industry.
Kwak No-jung, president of SK hynix, and Lee Hyuk-jae, professor at Seoul National University, serve as co-chairs, along with Kwon Seok-jun, professor at Sungkyunkwan University in the Department of Polymer Engineering, Kim Dong-soon, professor in the Department of Semiconductor System Engineering at Sejong University, and Baek Kwang-hyun, professor at Chung-Ang University in the Department of Electrical and Electronic Engineering, participating from academia. From the industry, Park Jae-hong, CEO of Boss Semiconductor, Ahn Hyun, president of SK hynix's development department, Lee Hyun-duk, vice chairman of Wonik, Jo Myung-hyun, CEO of Semifive, and Ahn Gi-hyun, executive director of the Korea Semiconductor Industry Association, participated.
Professor Lee Hyuk-jae summarized the signs of crisis in the Korean semiconductor industry into seven points. He said, "The technology of memory semiconductors, which had shown dominance, has entered an era of normalization, narrowing the gap with foreign corporations, and the profitability of investments has decreased, increasing the possibility of entering a vicious cycle of investment," and he diagnosed that "the foundational industries for manufacturing, such as materials, parts, and equipment, are weak, and the fabless and packaging industries, which need to explore new markets, have a weak growth base."
There were also criticisms regarding the systems and infrastructure. The professor pointed out, "Talent is not being attracted, and many skilled individuals are leaving for overseas. It is also difficult to establish essential infrastructure such as power and water, and there are many unnecessary duplicate regulations." He added that the inefficiency in work due to the 52-hour workweek system is also a problem.
Experts suggested four solutions to overcome the semiconductor industry crisis: enhancing manufacturing competitiveness, revitalizing the system semiconductor ecosystem, promoting research and development (R&D) to create new markets, and providing policy support for attracting and bringing in talent. Each solution was presented by Ahn Gi-hyun, executive director, and professors Kwon Seon-jun, Kim Dong-soon, and Baek Kwang-hyun.
The necessity for significant investment was raised to strengthen manufacturing competitiveness and recover the system semiconductor ecosystem. Experts explained that financial support of approximately 300 trillion won is needed for timely investments in memory technology and advanced packaging technology. It is also necessary to provide water and power infrastructure on time to ensure the smooth operation of the Yongin cluster currently under development.
For the system semiconductor ecosystem, a foundry fab suitable for domestic fabless is needed. It was stated that facilities are required to take charge of R&D, quality management, and international standards for domestic semiconductor-related corporations from fabless to materials, parts, and packaging. It was also mentioned that supporting the system semiconductor ecosystem with 20 trillion won could yield an economic effect of 300 trillion won in 20 years.
Executive Ahn said, "It is necessary to provide selling incentives when selling domestic materials and parts products to domestic demand corporations," adding, "Semiconductors are a race against time, and we must also break free from regulations that delay speed and the constraints of the 52-hour workweek."
It was also noted that semiconductor R&D should involve demand corporations, large companies, and fabless from the planning stage, creating large-scale R&D aimed at commercial targets. Lastly, it was suggested that to attract talent, a special pension law for semiconductors, similar to private school pensions, should be established and semiconductor clubs should be created in middle and high schools to foster talent from an early age. There were also points made about the need for semiconductor departments in universities aimed at attracting foreign talent.
Kim Gi-nam, president of the Korean Academy of Engineering, stated, "It is very important to protect semiconductors, which are the core of Korea," and noted, "Over the past year, the academy has gathered experts' opinions to prepare measures to overcome the K-semiconductor crisis, which is the cornerstone of our economy."