'Korea will become non-memory chip powerhouse by 2030'

By Baek Byung-yeul

President Moon Jae-in enters Samsung Electronics’ semiconductor plant in Hwaseong, Gyeonggi Province, Tuesday, accompanied by company Vice Chairman Lee Jae-yong. / Yonhap

The government will extend all possible support in the non-memory chip sector to Samsung and other companies to make Korea a global powerhouse by 2030, President Moon Jae-in said Tuesday.

Moon made this and other remarks, stressing the importance of system semiconductors for economic growth here during his first visit to a Samsung Electronics semiconductor factory in Hwaseong, Gyeonggi Province.

"Our goal is clear. By 2030, we aim to be No. 1 in the system semiconductor foundry sector, and have a 10 percent share of the fabless sector market,” he said during an event celebrating the start of mainstream production of non-memory chips.

Korea has been displaying its dominance in the memory chip market thanks to global players such as Samsung, but companies have been urged to diversify their portfolios, which have been heavily dependent on the memory business.

Moon emphasized it was essential to nurture the non-memory chip business as it is one-and-a-half times bigger than the memory chip market and less affected by industry cycles.

“The memory chip business played a great role in changing the perceptions of made-in-Korea products. When we entered the memory chip business, the world said it wouldn't be easy to succeed but we proudly made it,” he said.

“Taking the title of the world's No.1 country in memory chips as a springboard, we are set for new challenges. If our initiative in the system semiconductor sector succeeds, we will position the country as a true comprehensive semiconductor powerhouse.”

The move comes after Samsung announced April 24 that it would invest 133 trillion won ($113.9 billion) by 2030 in the non-memory and foundry sectors to become a true global leader.

In line with Samsung's ambitions, the government also announced plans to foster the system semiconductor industry.

To help local fabless firms achieve global competitiveness, the government will buy 26 million system semiconductors worth more than 240 billion won for use in the public sector in energy, safety, national defense and transportation infrastructure related fields by 2030.

The Ministry of Science and ICT and the Ministry of Trade, Industry and Energy will invest 1 trillion won from 2020 to 2029 in developing next-generation semiconductors that can be used in artificial intelligence (AI), autonomous vehicles and the bio healthcare sector, and strengthen protective measures for the related technologies. To secure more expertise in the sector, the government will nurture 17,000 specialists by 2030.

Under the plan, the government aims to position the country as a top location for the foundry business, achieve a market share of more than 10 percent in the “factory-less” semiconductor market, and create 27,000 new jobs.

The government stressed the significance of the non-memory chip sector by saying “demand for system semiconductors has been expanded from PCs and mobile devices to various areas such as vehicles, robots, bio healthcare and energy sectors on the occasion of the Fourth Industrial Revolution.”

The President also said the non-memory chip sector has great growth potential. “Its growth potential is infinite if it's utilized in all industrial fields, such as robots, bio and cars,” he said, adding that the total market size will grow to 300 trillion won by 2022.