Government Focuses on Semiconductor Super-Gap... Concentrated Support for Investment, Workforce, and Materials, Parts, and Equipment

The 1st Industrial Strategy Roundtable Meeting Held
Industry Gathering at SK Hynix Headquarters
Strengthening Three Sectors of the Superpower Ecosystem
Planning Development Strategies Including Regulatory Improvement and R&D

Lee Chang-yang, nominee for Minister of Trade, Industry and Energy, appeared at the confirmation hearing held at the National Assembly on the 9th and responded to questions from lawmakers. Photo by Yoon Dong-joo doso7@

The government has pledged focused support in three key areas?investment, workforce, and the materials, parts, and equipment (SoBuJang) ecosystem?to build a semiconductor superpower domestically. This consensus comes amid agreement that public-private efforts are essential to secure an advantage in the global semiconductor hegemony competition.

According to the Ministry of Trade, Industry and Energy on the 30th, Minister Lee Chang-yang held the ‘1st Industrial Strategy Roundtable’ at SK Hynix headquarters in Icheon, Gyeonggi Province, together with semiconductor industry leaders to explore ways to strengthen the domestic semiconductor industry. Industry representatives including Kwak No-jung, CEO of SK Hynix, Lee Hyun-duk, CEO of Wonik IPS, and Lee Jun-hyuk, CEO of Dongjin Semichem, participated in the meeting.

Minister Lee diagnosed, "Our semiconductor industry is facing challenging conditions due to global supply chain instability and large-scale support measures by major countries," adding, "We are at a point where extraordinary efforts are required."

The industry proposed urgent government support in areas such as revitalizing corporate facility investment, improving regulatory and workforce conditions, and strengthening the competitiveness of SoBuJang companies. In particular, they called for expanded tax credits and support for essential infrastructure such as power and water to ensure investment support measures that are not inferior to competing countries. For example, the United States is discussing a bill to support $52 billion over five years for semiconductor facilities and research and development (R&D) investment, and the European Union (EU) is also considering supporting public and private investments in the semiconductor sector amounting to 43 billion euros by 2030. Domestically, Samsung Electronics and SK Hynix invested KRW 6.6599 trillion and KRW 4.693 trillion respectively in semiconductor facilities in the first quarter of this year. Although investments in the trillion-won range continue every quarter, factory operating rates are at 100%, making capacity expansion urgent.

Requests were also made for support to improve location conditions. SK Hynix announced plans in 2019 to invest KRW 120 trillion to build four production plants within the semiconductor cluster in Yongin, but has yet to break ground due to land compensation issues. SK Hynix President Noh Jong-won recently stated during the first quarter earnings conference call that production capacity must be gradually increased over the coming years to meet market demand, highlighting the tight semiconductor supply situation. Accordingly, the government plans to devise strong support measures for corporate investment, including regulatory improvements and expanded tax benefits for facility investment.

Domestic SoBuJang companies requested R&D support for key SoBuJang items to secure global-level technology and workforce. Currently, domestic companies hold only about a 4% share of the global semiconductor equipment market, making long-term support critical. In response, the government pledged to promote localization of key SoBuJang items and build a cooperative ecosystem based on win-win relationships by strengthening collaboration between device and SoBuJang companies.

There were also calls for urgent government-led workforce development measures, including establishing semiconductor departments, expanding enrollment quotas, and operating training programs aligned with industry needs. The government plans to first expand enrollment in semiconductor-related undergraduate programs and strengthen support to resolve workforce shortages in SoBuJang companies. The government intends to announce a new semiconductor industry development strategy incorporating these measures within the first half of this year. Minister Lee said, "We will actively consult with related ministries to ensure that the voices heard from the field at this meeting are reflected in the strategy," adding, "Through the Industrial Strategy Roundtable, we will continue proactive communication with industry sectors and fields."

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