President Lee Jae Myung (second from right) on Dec.10 chairs the briefing session "K-Semiconductor Vision and Promotion Strategy in the AI Era" attended by relevant ministers at his office in Seoul. (Office of the President)

By Jeon Misun

A newly released plan for the domestic semiconductor sector eyes the setup of a mutually beneficial foundry under the goal of maintaining the super gap in the country's dominance in semiconductor manufacturing and expanding tenfold the number of fabless companies, or those specializing in chip design.

The Ministry of Trade, Industry and Resources on Dec. 10 in a joint meeting with relevant ministries discussed strategies for making Korea one of the world's top two chip superpowers at the Office of the President in Seoul.

Participants agreed on the need to boost system semiconductor competitiveness and tackle structural limitations in materials, components, equipment and personnel. Thus they announced plans to maintain Korea's global lead in chip manufacturing and expand its fabless sector tenfold through creating the world's largest semiconductor cluster, advancing system semiconductors, launching a related graduate school and building a chip innovation belt in the southern region.

To boost the especially exposed ecosystem for system semiconductors, a proposed Korean fabless-foundry model will allow close collaboration between demand-side companies and foundries (contracted semiconductor makers). Investment of KRW 4.5 trillion from the public and private sectors will go to build Korea's first mutual growth foundry capable of producing 12-inch, 40-nanometer chips.

Another project will seek technical self-reliance in defense semiconductors, for which the country heavily relies on imports.

"At this critical time in our industry's future dependent on securing leadership in semiconductors, we will provide full support for semiconductor manufacturing, which we excel in, to maintain our world No. 1 position," Minister of Trade, Industry and Resources Kim Jung-Kwan said.

"We will also mobilize the entire ecosystem including foundries and demand-side companies to expand system semiconductors tenfold, especially the fabless sector, an area where we lack competitiveness."

msjeon22@korea.kr