On Nov. 18, the Semiconductor Special Committee of the Korea Academy of Engineering explains the causes and solutions for the crisis in the Korean semiconductor industry at a presentation by experts./Courtesy of Korea Academy of Engineering

The Korea Academy of Engineering's Semiconductor Special Committee held a presentation on the 18th to diagnose the causes of the crisis in the Korean semiconductor industry and find solutions, with many leaders from the domestic semiconductor industry participating. The causes of the crisis and solutions as seen by semiconductor industry leaders were summarized.

▲Kwak No-jeong, President of SK hynix

“There is an idea that emerged while discussing within the Semiconductor Special Committee. China supports the semiconductor sector with diverse policy funds, and it was suggested that we should diversify our funding support as well. Typically, funding for facilities investment is provided to large corporations, and small and medium-sized enterprises benefit from a trickle-down effect. Conversely, this idea aims for a fountain effect. The government should directly support small and medium-sized enterprises, allowing them to secure price competitiveness and research and development (R&D) funding, revitalizing the entire semiconductor industry ecosystem.”

▲Lee Hyun-deok, Vice Chairman of Wonik

“It’s always uncomfortable to analyze the Korean semiconductor industry. I often hear that small and medium-sized enterprises need to make more effort in our semiconductor industry ecosystem. There are two large corporations in Korea with which small and medium-sized enterprises can collaborate. This is the background for our growth. It is important to motivate small and medium-sized enterprises through incentives that strengthen cooperation with large corporations. Another concern is that small and medium-sized enterprises find it challenging to secure outstanding talent. I hope that when small and medium-sized enterprises establish research laboratories for R&D in the metropolitan area, the regulatory environment can be eased, as the impact on environmental safety is not significant.”

▲Jo Myung-hyun, CEO of Semifive

“We need to consider whether we will only protect what we already have or seek to find opportunities for development by identifying what we lack in the existing semiconductor ecosystem. In the 1980s, TSMC in Taiwan created opportunities for growth through foundry services. We should also pay more attention to foundry design now. The soaring stock price of Broadcom, a U.S. semiconductor design company, shows that a design platform business can succeed. I believe it is essential to create a design platform that can design custom semiconductors. We need to harness national capabilities to utilize manufacturing infrastructure, small and medium-sized enterprise competitiveness, and talent pools.”

▲Ahn Hyun, President of SK hynix's Development Division

“I will speak from the perspective of engineers regarding the 52-hour workweek. I heard from someone who advises TSMC. TSMC encourages engineers to work late by offering special bonuses. Development can sometimes gain momentum and continue through inertia. However, I am concerned that the 52-hour workweek may create negative habits or practices when engaging in special activities like development.”