Hong Nam-ki: "Semiconductor Hegemony Competition Intensifies... Significant Budget Increase Next Year"

Opening Remarks at the 'Innovation Growth Big 3 Promotion Meeting'

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government will significantly increase next year's budget to support the short-term commercialization of automotive semiconductors in response to the global semiconductor hegemony competition. Additionally, it will launch paid demonstration services for autonomous driving commercialization and work on revising related laws and regulations.

Deputy Prime Minister Hong stated in his opening remarks at the 8th Innovation Growth BIG3 Promotion Meeting held at the Seoul Autonomous Vehicle Pilot Operation Zone, "A full-scale response is urgently needed from both the government and companies to compete in system semiconductors and future vehicles sectors and to secure global market share." On the 15th, Hong reviewed major strategic industry trends and discussed focused nurturing strategies at the expanded economic ministers' meeting chaired by President Moon Jae-in.

Hong added, "We will identify items that can be commercialized in the short term and prioritize support in the materials, parts, and equipment (SoBuJang) sector, pushing for a significant budget increase in 2022. We will also establish a future vehicle-semiconductor alliance and cooperation council to identify supply stabilization cooperation tasks and begin formulating a mid-to-long-term automotive semiconductor technology development roadmap by April." Furthermore, industry requests such as improving licensing procedures, financial and tax support, and workforce training will be addressed as a top priority, and issues requiring comprehensive review will be reflected in the 'K-Semiconductor Belt Strategy' to be announced in the first half of the year.

The future vehicle sector aims to be number one in competitiveness by 2030, targeting the world's top position in eco-friendly vehicle distribution and the world's first full commercialization of autonomous driving on major national roads.

Hong emphasized, "This year, future vehicle R&D investment will increase by 37% compared to last year, and the current investment strengthening trend will continue until 2025. We will focus R&D investment on six key technology developments: batteries, hydrogen fuel cells, autonomous vehicle communication, automotive semiconductors, automotive sensors, and autonomous driving software."

He also added, "We will support the development needs of internal combustion engine vehicle advancement and parts companies' transition to future vehicle technologies and focus on phased distribution expansion."

Support will be strengthened with the goal of providing autonomous driving commercial services on nationwide highways and major local government hubs by 2025.

Hong explained, "Paid demonstration services will begin in the first half of this year in six autonomous driving pilot operation zones, including Seoul Sangam, and regulatory and legal revisions will be pursued from the second half of the year. We will complete the development of autonomous large buses within this year and focus on developing seven core public services such as mobility support for transportation-vulnerable groups and emergency vehicle passage support."

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