President Yoon Says "Semiconductors Are the Way to Survival"... Minister of SMEs Rushes to the Field

Minister Lee Young Visits Bundang Fabless Company Site
Examines Semiconductor Prototype Chips in Laboratory... 'Semiconductor Study'
Promises to Expand Policy Funds, Establish Contract Departments, and Support Prototype Production
"Fabless Is Crucial for Achieving Semiconductor Super-Gap... Will Actively Support"

Minister Lee Young of the Ministry of SMEs and Startups (right) is visiting Qualitas Semiconductor in Bundang, Seongnam-si, Gyeonggi-do on the 16th, having a conversation with Kim Doo-ho, CEO of Qualitas Semiconductor.
[Photo by Ministry of SMEs and Startups]

[Asia Economy Reporter Kwak Minjae] At 4 p.m. on the 16th, Lee Young, Minister of SMEs and Startups, dressed in a green suit, strode into Room 410, the "Room of Truth." The "Room of Truth" is the laboratory of Qualitas Semiconductor, a fabless company located in Bundang, Seongnam City. Due to the nature of fabless companies designing semiconductors, it is impossible to know if they work properly until an actual semiconductor is produced and tested. The laboratory is called the Room of Truth because they can personally create and verify semiconductor prototypes there. Minister Lee studied semiconductors enthusiastically by examining the lab site and semiconductor prototype chips while conversing with Kim Doo-ho, CEO of Qualitas Semiconductor.

Amid President Yoon Suk-yeol’s repeated emphasis that "semiconductors are the way to survive," Minister Lee also visited a fabless site to show her determination for "intensive semiconductor study." On that day, the minister personally visited a small fabless company site to observe the semiconductor design process and held a discussion session to talk about on-site difficulties and the development direction of system semiconductors. Fabless companies refer to those in the system semiconductor industry that outsource chip production to foundries and focus solely on design.

The minister first visited the fourth-floor laboratory. It is known that this reflected her intention to hear the company introduction at the site where the actual semiconductor prototype exists.

After the explanation, Minister Lee went up to the 23rd floor to attend the discussion session. The session was attended by representatives of five fabless startup companies proven for their technology domestically and internationally, along with two experts including venture capitalists. According to the Ministry of SMEs and Startups, the discussion session was organized to listen to the on-site difficulties of fabless companies and to discuss solutions and the development direction of the domestic semiconductor industry.

At the discussion session, Minister Lee shared opinions on the various difficulties faced by fabless companies and the development of the domestic system semiconductor ecosystem. The companies attending the session voiced three major on-site core difficulties: enormous initial capital required from development to mass production, shortage of design personnel, and foundry supply shortages.

Lee Young, Minister of SMEs and Startups (third from the left), is speaking at the fabless forum held on the 16th at 'Qualitas Semiconductor' in Bundang, Seongnam-si, Gyeonggi-do.
[Photo by Ministry of SMEs and Startups]

Minister Lee responded by stating that to expand venture capital for early-stage fabless companies, a "Super Gap Fund" will be established from next year to increase venture investment in fabless companies. She also mentioned plans to establish and operate a "System Semiconductor Contract Department" from next year to resolve the shortage of design personnel in fabless companies.

The minister said that to create a mutually beneficial system semiconductor ecosystem between fabless companies and foundries, a "Fabless Challenge Competition" will be held next month in cooperation with Samsung Electronics Foundry to select and support outstanding fabless startup companies.

The discussion session with the fabless industry far exceeded the originally planned time. Concluding the session, Minister Lee said, "Today’s meeting was arranged because innovative and creative fabless companies are important in realizing Korea’s ‘semiconductor super gap,’ and the Ministry of SMEs and Startups intends to actively support this. We will prioritize solving the ‘three core on-site difficulties’ that the fabless industry desires.”

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