South Korea said on Thursday it is targeting local sourcing for half of its materials, components and equipment in semiconductor manufacturing by 2030, up from 30 percent now.The plan is part of President Yoon Suk-yeol’s administration’s strategy to boost industry.South Korea, home to leading memory chip makers Samsung and SK Hynix, is looking to strengthen its supply chain and resource stability to become an industry superpower.
The country’s chip industry estimates that about 20 percent of its equipment and 50 percent of materials come from local suppliers, the industry ministry said in a joint statement with other ministries.”Despite some gains in self-sufficiency, high-tech remains highly dependent on external parties,” it said, adding that the US-China trade conflict and the Russia-Ukraine war continued to destabilize supplies.Accordingly, the government and the private sector would invest 300 billion won ($230 million) in small business innovation and mergers and acquisitions of chip design firms, the ministry said. Investments should start next year.
Under the plan, South Korea will also spend 950 billion won on feasibility studies to develop energy and automotive chips from 2024 to 2030, and 1.25 trillion won on artificial intelligence chip development by 2029.The government will look at financing basic infrastructure such as electricity and water supply in places that serve as expanding centers for chip manufacturing, including Pyeongtaek and Yongin. It will also consider expanding tax breaks for infrastructure investment by large companies.
The private sector and the government would work together to train at least 150,000 people over 10 years to strengthen the semiconductor workforce, the ministry added. Semiconductors have been South Korea’s biggest export for nine consecutive years. In 2021, they accounted for 19.9 percent of all exports.
