The plan was revealed at a seminar held by the National Academy of Engineering of Korea. (Image courtesy of the National Academy of Engineering of Kor

Korea Considers Establishing ‘KSMC’ to Bolster Semiconductor Ecosystem

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2024-12-25 19:00:04

The plan was revealed at a seminar held by the National Academy of Engineering of Korea. (Image courtesy of the National Academy of Engineering of Korea)

SEOUL, Dec. 19 (Korea Bizwire) – South Korean industry and academia have proposed creating a “KSMC” (Korea Semiconductor Manufacturing Company), modeled after Taiwan’s TSMC, to address challenges facing the nation’s semiconductor industry.

The plan, revealed at a seminar held by the National Academy of Engineering of Korea (NAEK) on December 18, aims to build a balanced ecosystem between foundries and fabless companies through diversified manufacturing processes, including both cutting-edge and legacy technologies. 

Experts estimate that a KRW 20 trillion ($13.9 billion) investment in KSMC could generate KRW 300 trillion ($208.7 billion) in economic benefits by 2045. The initiative would support smaller system semiconductor companies, many of which are currently constrained by relying solely on Samsung’s advanced nodes under 10 nanometers.

“Taiwan maintains a balanced ecosystem where companies like UMC and PSMC focus on legacy and middle-tech processes, complementing TSMC’s advanced manufacturing.

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