record korea Saturday, December 28, 2024 6:00 AM On December 27, 2024, Chinese media Global Times cited South Korean media reports and reported that the South Korean government plans to establish a state-run foundry, KSMC (Korea Semiconductor Manufacturing Company), following the model that Taiwan has used successfully with TSMC. The article begins, “According to multiple Korean media outlets, including the Seoul Shinmun, at a recent meeting held at the National Academy of Engineering (NAEK), the Korean industrial and academic sectors proposed the establishment of a government-backed foundry manufacturer similar to Taiwan’s TSMC. The plan aims to build a balanced system between foundries and fabless companies through a variety of manufacturing processes (including cutting-edge and traditional) to address the challenges facing the domestic semiconductor industry and strengthen its competitiveness in the global market. Experts estimate that an investment of 20 trillion won (US$20 billion) will generate an economic effect of 300 trillion won (US$300 billion) by 2045. He continued, “According to Korean semiconductor industry sources, although semiconductor performance is on the mend this year, the industry is still facing its biggest crisis in history. Against the backdrop of intensifying competition in the global semiconductor industry, Korea’s previous lead in memory chip technology is gradually weakening, investment is being postponed, and issues such as the outflow of talent and lack of policy support are making it difficult for the industry to develop.” According to the data, between 2018 and 2023, South Korea’s memory chip exports fell from $83 billion to $42.9 billion, nearly half of that,” the report said, citing experts who said, “The KSMC initiative will solve structural problems within the industry and allow foundry companies that can handle special processes, such as Taiwan’s UMC (Universal Microelectronics Corporation) and PSMC (Power Semiconductor Manufacturing Company), to complement each other and companies with advanced technology. Currently, South Korea is overly dependent on Samsung Electronics’ sub-10 nanometer process, preventing more small system companies from developing. The study group also advocated for the active development of memory and advanced packaging technologies and the timely implementation of capital investment. “If the current alarms leading to slower growth in the fabless semiconductor design and packaging industry, talent outflow, and excessive regulation are not addressed, the Korean semiconductor industry will fall behind in the global technology race and suffer irreparable economic damage,” the article said, adding, “Experts are calling for the Korean government to encourage the development of large companies while also strengthening support for small and medium-sized enterprises, and to directly invest in small and medium-sized raw material, component, and equipment manufacturers, thereby promoting the expansion of research and development capabilities throughout the semiconductor industry’s entire manufacturing system.” The article concluded, “Some industry insiders have expressed concern about whether a government-funded company like KSMC can effectively address the challenge of advanced manufacturing processes, with SK Hynix reportedly proposing to use Samsung Electronics’ old foundry facilities as part of the KSMC plan.” (Translation and editing by Hara Kuniyuki) ※Related thread [Korea] “If things continue like this, everyone in Korea’s semiconductor industry will die” The Korean Academy of Engineering also steps in [12/11] [Masked Unida★] [The country’s luck has run out] Korea’s export outlook for next year worsens, the biggest reason is semiconductors = Korean netizens “Worried about the future” [12/25] [Masked Unida★].
People who just make plans and are satisfied with it. It’s the same as an elementary school kid who makes plans for summer vacation and is satisfied with it.
>>13 They were originally able to make it, but there was a spectacular spill from the factory, so if they tried to build a factory in Korea, there would be a lot of opposition from nearby residents.
If you plan it, it’s the same as it coming true, and if it comes true, it’s the same as it has an economic effect, ho ho ho ho. It was a wishful thinking article.
In fact, theoretically it’s impossible in Korea. First of all, they don’t have the money, and Samsung and SK are in competition (SK is more of a memory specialist, so it would effectively end up supporting Samsung), so if the government intervenes, things would get complicated. Above all, countries other than South Korea want to weaken the Korean semiconductor industry, so they are not serious about cooperating.
“Japan copied them,” “Japan is stealing,” “Japan should be grateful for what Korea has taught them.” They say things like that, yet they’re so comfortable about competing with the world in semiconductors. Compete with your own domestic industry lol.
Taiwan has factories in Japan and the US to protect its supply chain from the geopolitical risk of a Taiwan emergency. In some ways, the Korean Peninsula poses a higher geopolitical risk than Taiwan.
There is a movement to disperse semiconductor factories because it is dangerous to have them concentrated in TSMC, but the Korean Peninsula is also in danger, so Korean Semiconductor is already obsolete.
In the event of war, clean rooms will definitely become contaminated (explosions will send dust flying, and bullets will send gunpowder flying), so even if semiconductor factories are planned now, construction will probably only begin after the emergency has subsided. It may be 10 years from now, or even half a thousand years from now, in this super-polluted time that will never come.
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