[Yeouido Interview] Park Young-sun "The Semiconductor Cluster Emphasized by Yoon Is a Must-Do"

Public and Private Sectors Must Form National Semiconductor Committee for Discussions
Investment Needed in High-Value Products Like HBM

Former Minister of SMEs and Startups Park Young-sun described the world’s largest and most advanced ‘Semiconductor Mega Cluster Development Plan’ unveiled by President Yoon Suk-yeol as "an absolutely necessary task." She emphasized that a ‘National Semiconductor Committee’ and other bodies should be established to develop and implement a comprehensive semiconductor response strategy involving both the public and private sectors.

In an interview with Asia Economy on the 15th, former Minister Park stressed the need for strategic national support for the semiconductor industry, saying, "There is no digital without chip."

On the day she met with former Minister Park, President Yoon held the third ‘Public Livelihood Discussion’ under the theme ‘Semiconductor Industry Enriching People’s Lives’ at the Semiconductor Hall of Sungkyunkwan University Natural Science Campus in Suwon, Gyeonggi Province, announcing an investment of 622 trillion won in the semiconductor mega cluster. Regarding this, former Minister Park said, "While the 622 trillion won investment is important, the core of the semiconductor Yongin cluster lies in how water, electricity, and manpower are secured." Emphasizing the importance of detailed policy support, she added, "The G7 Project (a leading core technology development project aimed at elevating South Korea’s science and technology to the level of the major seven countries (G7) in the 2000s) provided the driving force for memory semiconductor development," and stressed, "Now, the government, companies, and academia should come together to form a National Semiconductor Committee to discuss strategies."

Former Minister of SMEs and Startups Park Young-sun, co-author of 'Semiconductor Sovereignty Nation.' Photo by Heo Young-han younghan@

Park, a senior researcher at Harvard University’s Kennedy School who studies semiconductors and hegemonic state strategies in the U.S., published a book this month titled Semiconductor Sovereign State. In this book, she addresses topics such as ‘why semiconductors have been weaponized, what is needed to become a semiconductor sovereign state, and how this will determine South Korea’s fate and future.’ Curious about why a politician wrote a book on semiconductors, I met with her.

- What sparked your interest in semiconductors?

△ In the early 1990s, I attended a seminar in Jeju Island where I met Lee Kun-hee, Chairman of Samsung Group. He said that semiconductors would sustain South Korea’s future. That’s when I became interested. During the Moon Jae-in administration, Chief of Staff Noh Young-min, who was serving as ambassador to China, told me, ‘China’s semiconductor rise is frightening’ and ‘our companies will soon be chased by China.’ So, while memory semiconductors needed to be developed, I saw the necessity for system semiconductors. When I was minister in 2019, I initiated efforts. I proposed to Samsung and others to nurture design companies, but there was no response for six months. Reluctantly, we partnered with ARM (a British semiconductor design company) and invested in 10 companies. Among them, three have grown in design. ARM started this program in Korea and expanded it worldwide. This is a regrettable point for us.

- Your book even refers to ‘Japan’s rearmament’ regarding semiconductors, showing attention to trends in the Japanese industry. What do you think Japan and the U.S. are thinking?

△ Thirty years ago, Japan was the world’s number one in semiconductors. That made Japan one of the two major powers (G2), threatening the U.S. After the U.S. forced the yen’s devaluation, South Korea squeezed into the market and prospered for 30 years. South Korea’s per capita income reached $30,000 this way, but Japan is trying to recover its lost 30 years. Thirty years ago, Japan was a ‘Silicon Island,’ and it aims to become one again. I believe the U.S. has some role in this decision. Japan likely lobbied the U.S., but South Korea has instability due to North-South issues, and Taiwan has unstable relations with China, so Japan promotes itself as the closest Northeast Asian region to the U.S. From the U.S. perspective, semiconductors are extremely important militarily, so they are creating alternative sites. For example, Intel is now investing in Europe. One year after the U.S. enacted the ‘CHIPS and Science Act (CSA),’ there was a symposium at the Kennedy School where former White House Semiconductor Coordinator Ronny Chatterji showed a global supply chain map that excluded South Korea and Taiwan. It surprised me because it seemed to reflect the U.S. view of the semiconductor future excluding South Korea and Taiwan.

- What advice do you have regarding the semiconductor mega cluster development plan?

△ Success lies in the details. The three key conditions for semiconductors?water, electricity, and manpower?are crucial. The SK Hynix Yongin semiconductor cluster was delayed mainly due to water issues. In countries like Taiwan, during droughts, the political debate was whether to supply industrial water for semiconductors first or agricultural water for rice cultivation. Statistics show Taiwan prioritized water for semiconductors, demonstrating how much they value TSMC, a representative semiconductor company. Electricity demand is 10GW, which is one-tenth of the electricity used on the Korean Peninsula. Samsung Electronics currently uses more electricity daily than Busan City. However, the plan is to use liquefied natural gas (LNG). Large semiconductor importers like Apple say they will not buy unless products are produced with RE100, i.e., renewable energy. We must also align with renewable energy. There is debate whether nuclear power counts as renewable energy. In that case, we have no choice but to pursue small modular reactors (SMRs), so the portfolio is the issue. Besides nuclear power, we should consider creating smart farms in rural areas with solar panels on top.

- What will be needed in the future regarding semiconductors?

△ Memory semiconductors are also evolving. There is High Bandwidth Memory (HBM), which stacks semiconductors vertically for high-speed operation. In the past, it was not cost-effective and received little attention. But with the emergence of ChatGPT and others, faster operation became necessary, making this important. We need to invest in such high value-added packaging. Design cannot be done quickly, so investment in human resources is essential. We must nurture talent, and since talent is needed even now, support measures should be prepared to allow foreign experts to enter the country.

- There was controversy last year regarding the research and development (R&D) budget. What are your thoughts on this year’s budget?

△ I once asked a German minister what the secret was to becoming a manufacturing powerhouse and SME powerhouse. The answer was ‘pouring water into a bottomless barrel.’ If you keep supporting like that, things improve. The U.S. does not intervene in R&D like we do; they sow seeds and after 2-3 years find the real winners. Then the amount increases and the government gets involved. In contrast, we intervene in even the smallest details. The R&D system needs reform, but cutting the budget like this year is wrong. It should have been increased.

- The U.S. presidential election is in November this year. What is your outlook?

△ The probability of former U.S. President Donald Trump returning seems to be increasing. However, it is still uncertain. Like in South Korea, those who express support are active supporters. The intellectual class supports President Joe Biden but does not publicly declare their support, so we need to watch closely. If former President Trump is re-elected, it will largely be due to fears that the U.S. might be overtaken by China. In this context, semiconductor regulations may become stricter.

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