Against the backdrop of intensifying competition in the global semiconductor industry, the South Korean government plans to invest 20 trillion won (about 100.1 billion yuan) to build a KSMC (Korea Semiconductor Manufacturing Company) wafer foundry. This major move demonstrates South Korea's ambition to strengthen its position in the semiconductor industry and challenge global leaders such as TSMC. In this article, China Exportsemi will analyze the current situation of the Korean semiconductor industry, the details of the KSMC project, and the impact on the global semiconductor industry to make an in-depth report.
The current state of the semiconductor industry in South Korea
As the world's largest producer of memory chips, South Korea's global semiconductor market share is about 18.4%, ranking second in the world for many years since 2013. However, while Samsung Electronics and SK hynix have advantages in memory chips, South Korea lags significantly behind Taiwan and the United States in logic process technology and fabless chip design.
In recent years, this gap has been widening due to:
1. Insufficient investment in technology: lagging behind TSMC in the research and development of advanced process nodes.
2. Single market structure: too dependent on memory chip business.
3. Talent gap: There is a shortage of high-end semiconductor design and manufacturing talents.
4. Regulatory constraints: Limit the expansion and flexibility of semiconductor companies.
Positioning and objectives of the KSMC project
The establishment of KSMC aims to make up for South Korea's shortcomings in the field of logic chips and wafer foundry and promote the diversification of the industrial structure. According to the South Korean government's projections, the project will generate economic benefits of up to 300 trillion won (about 1.5 trillion yuan) in the next 20 years (until 2045).
1. Project positioning: KSMC will focus on foundry services for advanced and traditional processes, and provide localized support for Korean semiconductor companies.
2. Core goal: to narrow the technology gap with TSMC and build an independent ecosystem from design to manufacturing.
Figure: The South Korean government plans to invest 20 trillion won to build a KSMC wafer foundry
Technological and strategic advantages
KSMC will focus on two main strategies:
1. Resource reuse: SK hynix CEO Kwak Rok-jeong proposed to retrofit Samsung's existing older fab for production of legacy processes. This not only reduces capital expenditure for new plants, but also makes the most of existing industrial infrastructure.
2. Technology Acceleration: South Korea's National Academy of Engineering (NAEK) has called on the government to increase investment in R&D, while incentivizing companies to accelerate technological innovation by providing tax incentives and direct subsidies.
In addition, KSMC plans to adopt advanced chiplet packaging technology to improve semiconductor design flexibility and production efficiency, helping South Korea gain a competitive advantage in the high-performance computing and artificial intelligence chip market.
Policy support and economic benefits
In order to promote the implementation of the KSMC project, the South Korean government has announced a series of supporting policies, including:
1. Policy-based financing: More than 14 trillion won of special funds will be provided for infrastructure construction and equipment procurement.
2. Tax incentives: Expand the proportion of tax credits for R&D expenditures of enterprises.
3. Talent introduction plan: set up a special education fund to attract high-end semiconductor technology talents at home and abroad.
According to expert estimates, these policies are expected to promote the overall revenue growth of South Korea's semiconductor industry by more than 10% per year in the next five years.
Challenges and opportunities in the global competitive landscape
South Korea's launch of the KSMC program comes at a time when major countries around the world are accelerating their deployment in the semiconductor industry. For example, the United States passed the "Chips Act" to attract TSMC and Samsung to invest in the United States, while the European Union is also vigorously promoting local semiconductor manufacturing. South Korea's key challenges include:
1. Technology gap: TSMC's leading position in 3nm and sub-processes.
2. International competition: compete with Chinese mainland in the market of low-end processes.
3. Market Uncertainty: The impact of global economic fluctuations on semiconductor demand.
However, South Korea also has unique advantages:
1. Memory Leadership: Combining memory and logic chip technologies can create stronger product competitiveness.
2. Local Industry Synergy: Samsung and SK hynix have the full value chain capabilities from design to manufacturing, laying the foundation for KSMC's success.
Outlook and Summary
The proposal of the KSMC wafer foundry marks a key step towards diversification and premiumization of the Korean semiconductor industry. With government-led funding and policy support, the project has the potential to transform South Korea's semiconductor industry and enhance its competitiveness in the global market.
However, the success of KSMC not only depends on sufficient capital investment and policy support, but also needs to overcome multiple challenges such as technology, talent and international competition. The South Korean government needs to continue to optimize the industrial environment, strengthen collaborative innovation with local enterprises and scientific research institutions, and deeply integrate into the global semiconductor supply chain.
It is foreseeable that the completion of KSMC will have a profound impact on the global semiconductor market pattern. As a global semiconductor power, South Korea is expected to take advantage of this opportunity to realize the magnificent transformation from a "memory chip kingdom" to an "all-round semiconductor power".
