16th Meeting to Promote BIG3
Government to Promote Semiconductor Sector
Deputy Prime Minister Hong Nam-ki presided over the 16th Meeting to Promote BIG3[1], a subsidiary committee of the Industrial Innovation Meeting, held on November 18. Plans to further develop semiconductor industries were main topics of discussion.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
Changes to come in global semiconductor value chain
The ‘untact’ economy getting more rampant globally, as well as digital transformation accelerating backed by AI development, chips demand is surging. This has brought about new challenges to the economy of which the exports rely heavily on chips. The new challenges include
- Global semiconductor value chain appearing at the center of discussion with nations trying to establish their own supply chains to evade supply bottlenecks resulting from the pandemic and sudden demand hikes
- Competition in the semiconductor market projected to get fierce with major economies seeking their own chips suppliers
Given these challenges, we have to work on the second leap forward in the semiconductor industry, such as by seeking excellence in memory chips and making advances in a-system-on-a-chip. To encourage the industry, the government will do the following.
- Work on the legislation of the special act on national strategic industries
- Implement next year’s BIG3 budgets as planned, which amount to over 6 trillion won
- Work to provide fiscal and tax support as planned in the 2022 tax revision
We expect over 510 trillion won worth of investment to be made by the private sector in line with the government support.
Promote R&D
- Support large R&D projects, such as the 1.96 trillion won worth of next generation intelligent semiconductor project and around 400 billion worth of PIM[2] AI project
- Upgrade mid- to long-term R&D investment policies, such as by drawing up a 10 year roadmap for semiconductor R&D investment and working on quality workforce development, for which the government will provide corporations with an equal amount of matching funds
Respond to current issues, including deregulation
- Have improved construction regulations to help build facilities for EUV[3] chip technology
- Work on deregulation to help locate a semiconductor cluster near Seoul
- Have worked to resolve car chip shortages, such as by introducing fast track to customs clearance, giving a hand with chip purchase negotiations and approving alternative technologies
- Work on a mid-term plan for a domestic car semiconductor supply chain, including R&D investment and a roadmap to home manufacturing of car semiconductors
Support fabless startups
- Help with venture funding, as well as with finding foundries for their chip designs
- Work on a company-specific, all-round support from designing and production to marketing to help take an over 10 percent global market share by 2030
