South Korea aims to strengthen the localized chip materials industry by 2030
South Korea has been the world’s leading supplier of memory chips, but the pandemic has made it realize that just memory dominance isn’t enough. South Korea aims to locally source half of the chip materials, components, and equipment in the semiconductor manufacturing industry by 2030, up from the current 30%. So the country started aiming for something bigger–to make itself the world’s largest chip materials industry base over the next decade.
The country still relies on higher-tech products from external suppliers, as well as many other countries, noting that the geopolitical situation in the world remains dangerous. The plan is part of President Yoon Suk-yeol’s administration’s strategy to strengthen the semiconductor manufacturing industry as the home to top memory chip industries to bolster chip supply chain stability and resources to become a “superpower” in the semiconductor field. That country is attempting to make up for its dependence on external suppliers and to increase local production.
South Korea plans to strengthen the semiconductor industry:
South Korea plans to intend to spend KRW 950 billion on feasibility studies on the development of electric and automated chips between 2024 and 2030. South Korea’s chip materials industry estimates that about 20% of chip equipment and 50% of chip materials have been localized, the chip industry ministry said in a joint statement with other ministries. Despite some achievements in self-reliance, high-tech, key technologies are still heavily dependent on external parties.
The chip industry minister said that from next year, the government and the private sector will give 230 million dollars to the South Korean government in an investment effort in technology companies to strengthen local technology industries. From 2024 to 2030, South Korea plans on allowing more than $700 million for the development and production of power microcircuits and chips in the automotive industry. A staggering KRW 1.25 trillion will be allocated to develop artificial intelligence chips. By 2029 more than $900 million will be the development of AI chips.
The investment is going to go towards the creation of an expansion of the necessary infrastructure for the production of microcircuits. The goal was followed by a string of chip-making plans that included an allocation of US$450 billion for the next ten years. Additionally, the government will also consider funding for essential infrastructures, such as electricity and water supply, at places that serve as expanding chip materials production hubs and the government of South Korea will consider expanding tax incentives to invest in the technology industry.
