South Korea wants to establish KSMC to compete with TSMC
- Writer: info@mps-asia.com at
- Tech news
Theo Tom's Hardware, the proposed name of the new enterprise that the Korean government is targeting is Korea Semiconductor Manufacturing Company (KSMC). The proposal was presented at a workshop organized by the National Academy of Engineering of Korea (NAEK).
South Korea wants to learn from Taiwan in developing semiconductor industry
NAEK believes that the establishment of KSMC with government support will help Korea successfully replicate Taiwan's semiconductor ecosystem, where not only TSMC but also more than 250 small semiconductor technology and software companies operate effectively in Hsinchu Science Park (Taiwan).
However, to achieve this, it is necessary to provide resources for small companies in the industry so that they can grow alongside giants like Samsung and SK Hynix. Experts estimate that the investment of about $13,9 billion in KSMC could generate economic growth of up to $208,7 billion by 2045. However, there are still doubts about whether this investment is enough to build a major chipmaker, as well as the ability of the company to develop advanced manufacturing technology and attract enough orders to ensure profitability.
South Korea is falling behind Taiwan in the semiconductor industry.
In addition, South Korea also needs more chip designers without its own manufacturing facilities. Although it is the largest memory manufacturer world, South Korea still lags behind Taiwan in logic processing technology and chip design. According to the NAEK report, the South Korean semiconductor industry is facing many challenges, including a widening technology gap with international competitors, insufficient investment attractiveness, weak growth of companies without their own manufacturing facilities, a shortage of talent, and excessive regulation.
To improve the situation, Korean companies need to address structural shortcomings such as over-reliance on Samsung’s advanced sub-10nm processes and lack of mature process technology. Experts recommend that Korea learn from Taiwan, where companies such as United Microelectronics Corporation (UMC) and Powerchip Semiconductor Manufacturing Corporation (PSMC) are focusing on producing finished and customized components to complement TSMC’s advanced manufacturing processes.
Addressing current issues is essential to securing Korea's global leadership in semiconductors.