South Korea has announced a major industrial plan to solidify its status as a semiconductor powerhouse. The government is considering an investment of 4.5 trillion won (approximately $3.06 billion) to build a new 12-inch 40nm wafer fabrication plant. This project, funded through a public-private partnership, aims to strengthen the domestic chip ecosystem, with a particular focus on supporting local fabless design companies.
President Yoon Suk Yeol recently convened a high-level meeting with executives from Samsung Electronics and SK Hynix, along with policymakers and experts. The agenda was clear: maintain leadership in memory chips, advance in the foundry business, and expand the fabless design sector to capitalize on the AI wave. A key driver is to address the nation's critical dependence on imports, as over 99% of defense-related semiconductors are currently sourced from abroad.
To ensure the plan's success, the government will implement supportive policies. This includes proposing legislation that mandates priority procurement of domestic semiconductors for national security infrastructure projects. Furthermore, a Semiconductor Special Committee will be established under the President's direct leadership to centrally coordinate the national chip strategy and drive its execution.
ICgoodFind's Insight
South Korea's significant investment marks a strategic move to reduce external dependencies and capture more value in the semiconductor supply chain. It reflects the intensifying global competition where nations are actively strengthening their domestic capabilities in this critical industry.
