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  • btc = $99 288.00 749.69 (0.76 %)

  • eth = $3 489.89 3.90 (0.11 %)

  • ton = $5.96 0.10 (1.64 %)

25 Dec, 2024
1 min time to read

South Korea is considering establishing a state-supported national semiconductor manufacturer, tentatively named Korea Semiconductor Manufacturing Company (KSMC), to strengthen its position in the global chip foundry market, according to Tom's Hardware, citing Korean media.

The initiative, unveiled during a seminar by the National Academy of Engineering of Korea (NAEK), aims to replicate Taiwan's success in building a highly efficient semiconductor ecosystem. Taiwan's model supports not only TSMC, the market leader, but also over 250 smaller companies specializing in chip design and software.

Experts estimate that an investment of 20 trillion Korean won ($13.9 billion) in KSMC could yield economic growth of 300 trillion won ($208.7 billion) by 2045. However, achieving a competitive edge in cutting-edge manufacturing might require even greater investment. Additionally, South Korea would need to expand its fabless chip design sector to ensure a steady flow of orders for KSMC.

Adopting Taiwan's approach could help South Korea address its current challenges. Taiwanese companies like UMC and PSMC focus on mature nodes, complementing TSMC's work on advanced processes. The creation of KSMC could reshape South Korea’s semiconductor industry, which currently relies heavily on giants like Samsung and SK hynix.