South Korean industry intends to create a Korean Semiconductor Manufacturing Company (KSMC), similar to Taiwan's TSMC, to strengthen the semiconductor ecosystem in the country. The idea is to support small businesses working in the semiconductor manufacturing sector.
South Korean companies are effectively dependent on Samsung with its sub-10 nanometer process technology. The establishment of the KSMC will allow small companies without their own production facilities to order the semiconductor electronics they need.
Experts estimate that the 20 trillion won (US$13.9 billion) investment in the construction and development of the KSMC could generate about 300 trillion won (US$208.7 billion) in economic benefits by 2045.
A meeting of the National Academy of Engineering of Korea identified key problems facing the local semiconductor industry, including gaps with foreign competitors, weakening production, and among the proposed solutions are strengthening the semiconductor ecosystem, increasing investment in R&D, and implementing policies to attract and retain talent specialists.
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