100 Billion Won System Semiconductor Win-Win Fund Investment Launch

Ministry of Industry, KIAT, and Semiconductor Association Hold 'Semiconductor IR Conference 2020'
Invested Fund Established in April Last Year... 1.5 Billion Won Allocated to Autonomous Vehicle Semiconductor Chip Manufacturer

[Asia Economy Reporter Moon Chaeseok] The government announced that it has made the first investment from the 100 billion KRW-scale 'System Semiconductor Win-Win Fund' established in April last year. Together with related organizations, it created opportunities to activate investments in excellent small and medium-sized semiconductor companies.

The Ministry of Trade, Industry and Energy, Korea Institute for Advancement of Technology, and Korea Semiconductor Industry Association announced that they will hold the 'Semiconductor Company Presentation (IR) Conference 2020' at 2 p.m. on the 23rd at the COEX Intercontinental Hotel in Samseong-dong, Seoul, and announce the start of investments from the Win-Win Fund.

The IR conference was held to facilitate meetings between semiconductor SMEs confirmed to have excellent technology through government research and development (R&D) and asset management companies, aiming to activate investments in outstanding companies.

◆Matching Semiconductor SMEs with Technology and VCs

Source: Ministry of Trade, Industry and Energy

Seven companies participated in this event, including those utilizing artificial intelligence (AI) in the semiconductor field, system semiconductor design companies (fabless), and semiconductor materials, parts, and equipment companies.

Each company introduced its vision, including current status, business overview, and business plans, to about ten venture capital (VC) firms managing semiconductor funds to attract investment.

Following this, individual investment consultation sessions were held, providing in-depth information exchange and investment consulting on financing methods necessary for actual investment decisions between companies and VCs.

The seven companies attending, including SemiPowerrex, were selected as potential investment candidates through a demand survey targeting companies confirmed to have excellent technological capabilities based on semiconductor national R&D project information from the Korea Institute for Advancement of Technology.

After the IR conference, VCs will conduct selective screening for each company to decide on final investments.

◆100 Billion KRW Win-Win Fund Investment Executed... 1.5 Billion KRW Invested in Autonomous Vehicle Semiconductor Chip Company

Source: Ministry of Trade, Industry and Energy

Meanwhile, the Ministry of Trade, Industry and Energy announced that the first investment from the Win-Win Fund, established through the 'System Semiconductor Vision and Strategy' in April last year, has been executed.

An investment of 1.5 billion KRW was made in Company A, which manufactures semiconductor chips for autonomous vehicles. The investment will be used to develop semiconductor chips and intellectual property (IP) that meet next-generation in-vehicle communication standards and specifications.

Previously, in October last year, Samsung Electronics, SK Hynix, and Korea Growth Investment Corporation signed a memorandum of understanding (MOU) for the System Semiconductor Win-Win Fund, and in June, Jiyu Investment and P&P Investment were selected as sub-fund managers.

The fund's capital is 100 billion KRW. Samsung Electronics and SK Hynix each contribute 80 billion KRW, and the Growth Ladder Fund of Korea Growth Investment Corporation contributes 20 billion KRW.

The fund managers plan to actively invest in core fields of the 4th Industrial Revolution such as AI semiconductors, automotive semiconductors, power semiconductors, and communication semiconductors to support the establishment of the system semiconductor ecosystem and nurture global companies.

Separately from the Win-Win Fund, the 216.3 billion KRW-scale Semiconductor Growth Fund established in 2017 has invested over 80 billion KRW in 43 small and medium-sized enterprises including semiconductor materials, parts, equipment companies, and fabless companies.

Kang Kyung-sung, Director of Industrial Policy at the Ministry of Trade, Industry and Energy, said, "The first investment from the System Semiconductor Win-Win Fund is meaningful as it marks the beginning of full-scale private investment in the system semiconductor sector," adding, "We hope continuous follow-up investments will be made so that the fund can serve as a catalyst for scaling up domestic small and medium fabless companies, and especially expect expanded investments in AI semiconductor companies with high growth potential."

Director Kang also said, "We hope that this IR conference will lead to practical investments in excellent small and medium semiconductor companies, enabling them to secure growth foundations through financing and helping to strengthen the overall competitiveness of the semiconductor industry ecosystem."

Source: Ministry of Trade, Industry and Energy

This content was produced with the assistance of AI translation services.