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[2025-12-10]Government Announces Strategies to Become World’s Second Largest Semiconductor Power

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The government has decided to promote the establishment of the world’s largest and highest semiconductor cluster, fostering fabless and system semiconductors, creating semiconductor graduate schools, and building a semiconductor innovation belt in the southern region to become the world’s second-largest semiconductor power. On the 10th, the Ministry of Trade, Industry and Energy held a joint conference with relevant ministries at the Yongsan Presidential Office to discuss plans for Korea to become the world’s second-largest semiconductor power.

In order to expand semiconductor production capacity, continuous support for the construction of semiconductor clusters is planned. The government announced plans to establish 10 new semiconductor production fabs to enhance production capacity and build a global semiconductor production hub by connecting with existing production bases, building key infrastructure under national responsibility, and strengthening public support. The government will also expand support for various technology developments including AI-specialized technology fields, compound semiconductors, and advanced packaging technology development.

The government will strengthen the system semiconductor ecosystem by creating a collaborative ecosystem and supporting the localization of middle-tech semiconductors such as vehicle control microcontroller units (MCUs) and power management chips to create a stable profit base for fabless. Additionally, the government will establish public funds to invest in strategic cooperation between IPs and fabless operations and launch a defense semiconductor technology independence project to lay the foundation for self-reliant national defense. The government will also promote the semiconductor material and equipment global No. 1 project.

Through the Southern Semiconductor Innovation Belt, the government aims to expand the semiconductor industry nationwide, designating non-metropolitan specialized industrial complexes and strengthening financial support. Strategies include creating a packaging hub city in Gwangju, fostering the power semiconductor ecosystem in Busan, and concentrating R&D and commercialization support for semiconductor materials and components companies in Gumi. The government will also build specialized factories and certification centers in these regions to facilitate collaboration between component companies and packaging enterprises.

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