DistantNews
Support us
🇰🇷 South Korea /Technology

Gyeonggi Province's semiconductor strategy gains momentum with exclusion clause removal

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Gyeonggi Province's semiconductor strategy committee welcomed the deletion of a 'capital region exclusion' clause from the government's semiconductor special law enforcement decree.
  • The committee proposed a 'two-track strategy' to foster a K-semiconductor ecosystem, balancing existing clusters with new ones in non-capital regions.
  • Key goals include completing the Yongin semiconductor cluster, maintaining leadership in high-bandwidth memory, and nurturing fabless companies.

Gyeonggi Province's semiconductor strategy committee has officially welcomed the deletion of a clause that would have excluded the capital region from semiconductor cluster designations under the government's special law enforcement decree. This move is seen as a significant boost to Governor-elect Choo Mi-ae's pledge to create a comprehensive K-semiconductor ecosystem.

The 'capital region exclusion' clause, which was included in the requirements for semiconductor cluster designation, has been deleted, giving momentum to the promotion of Governor-elect Choo's key pledge of a 'K-semiconductor complete ecosystem'.

— Kim Yong-seokCo-chair of the Semiconductor Super-Gap Strategy Special Committee, commenting on the removal of the exclusion clause.

Kim Yong-seok, co-chair of the committee and a former Samsung Electronics executive, highlighted Gyeonggi Province's strong advantages in the semiconductor industry. He explained that the industry's complex structure, involving over 600 micro-processes and thousands of equipment pieces, requires immediate responses from material, component, and equipment suppliers within two hours to prevent yield losses. This proximity is why global leaders like ASML, AMAT, Lam Research, Tokyo Electron, and KLA have established R&D centers and Korean headquarters in the province.

However, Kim warned against complacency, citing China's rapid advancements. He pointed to Huawei's Ascend 920 AI chip matching Nvidia's H20 performance and Chinese memory makers like CXMT and YMTC threatening the market with advanced technologies. "If we do not efficiently use the resources secured during the current super cycle, this boom could become a poison," he stated.

If we do not efficiently use the resources secured during the current super cycle, this boom could become a poison.

— Kim Yong-seokWarning about the competitive landscape and the need for strategic resource allocation.

The committee proposed a 'two-track strategy' to achieve global competitiveness and balanced national development. This involves immediately designating existing capital region semiconductor clusters under the special law to build a foundation for the AI era, while simultaneously establishing new clusters in non-capital regions to promote mutual growth.

We will also spare no effort in supporting companies to strengthen competitiveness in next-generation memory development and advanced packaging technologies.

— Kim Yong-seokOutlining support for companies in advanced semiconductor technologies.

Specific goals include the swift completion of the Yongin semiconductor cluster by supporting essential infrastructure like power and water, and residential facilities. The strategy also aims to solidify the world's leading position in memory semiconductors by continuing advancements in high-bandwidth memory (HBM) and supporting companies in next-generation memory development and advanced packaging technologies. Furthermore, the plan focuses on nurturing 200 fabless companies, including 40-50 star startups, centered around Pangyo, Seongnam. This aims to diversify the semiconductor ecosystem beyond memory to AI and system semiconductors, leveraging South Korea's strong manufacturing base for 'on-device AI semiconductor' policies.

We will also solidify the world's number one position in memory semiconductors by continuing the super-gap in high-bandwidth memory.

— Kim Yong-seokStating the goal to maintain leadership in the memory semiconductor market.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog