Seoul: The government has laid out a strategic plan aimed at preserving South Korea's leadership in next-generation memory chip technologies amid growing global competition in the artificial intelligence (AI) semiconductor market.
According to Yonhap News Agency, the vision announced by Industry Minister Kim Jung-kwan includes an investment of 215.9 billion won (US$146.8 million) by 2032 to develop next-generation memory chip technologies like neural processing units (NPUs) and processing in memory (PIM). This strategy was disclosed during an intergovernmental meeting on fostering the Korean semiconductor industry, led by President Lee Jae Myung.
These emerging technologies are anticipated to surpass the capabilities of high-bandwidth memory (HBM) in AI inference, as per the Ministry of Trade, Industry and Resources. The government also plans a significant investment of 1.27 trillion won over the next five years in AI-optimized semiconductors, alongside 260.1 billion won by 2031 for compound semiconductors, and 360.6 billion won by 2031 for advanced packaging technologies.
A core aspect of the road map includes a commitment of 700 trillion won by 2047 for the construction of 10 new semiconductor fabrication plants, aiming to position Korea as a global hub for chip production. Furthermore, the plan seeks to enhance Korea's capabilities in system semiconductors by fostering a collaborative ecosystem involving demand-side companies and fabless firms for on-device AI development and homegrown technologies for middle-tech semiconductors.
The ministry defines middle-tech semiconductors as chips requiring advanced engineering, such as microcontroller units for automobiles and power management integrated chips. To support local production of these chips, a "cooperative foundry" will be established to provide dedicated production capacity for Korean fabless companies.
Additionally, efforts will be made to enhance the competitiveness of the materials, parts, and equipment sectors within the semiconductor industry, along with initiatives to train advanced talent. A project to create a mass-production test bed for materials, parts, and equipment linked to chip manufacturing is set to begin, with full operation targeted for 2027.
In terms of talent development, plans are in place to increase the number of graduate schools specializing in semiconductors from six to ten by 2030. An agreement with British semiconductor design company Arm aims to train 1,400 chip design specialists in Korea.
The government also intends to integrate this semiconductor initiative with regional development plans, designating the southwestern city of Gwangju as a cluster for advanced chip packaging, Busan as a zone for power semiconductors, and Gumi as a cluster for semiconductor materials and parts.
Minister Kim emphasized the necessity of utilizing national strength to win the global semiconductor race, committing to maintaining Korea's edge in memory chips while enhancing the country's capabilities in system semiconductors.