South Korea Will Invest $1 Billion 340 Million To Strengthen Semiconductor Power

South Korea's industry minister, Bai Yunkui (Paik Un-gyu), on Monday (30) visited the main semiconductor production line of 005930-KR and SK, and vowed to invest 1 trillion and 500 billion won ($1 billion 340 million) in the next 10 years to strengthen the competitiveness of Korean semiconductors.

"In order to keep South Korea as the world's top semiconductor giant, we will support the development of the chip industry with three strategies," he said in an interview.

Chip market is an important pillar of Korean industry, as Asia's fourth largest economy, semiconductor chips account for about 20% of Korea's exports.

Samsung, the world's largest memory chip maker, ranked first in DRAM and NAND, while SK helix ranked first and fifth in DRAM and NAND, respectively. Mr. Bai said South Korean manufacturers are extremely competitive in the DRAM and NAND industries, but have reached their limits and need to develop new materials and equipment.

The Ministry of Industry said it would cooperate with the science and information and communication technology sector to make necessary investments in the Korean semiconductor industry. Government investment of $1.34 billion will be used to develop new semiconductor materials and devices, in an effort to make the country a global semiconductor hub. The three focus will be on developing memory chips, coordinating the symbiosis between the IC design plant and the wafer plant, and attracting global semiconductor materials and equipment manufacturers to establish production centers in South Korea.

The first task of China's "China made 2025" program is to develop semiconductor technology in the near future, and the Chinese government has invested billions of dollars in the semiconductor industry. The move has triggered South Korea's fears. In addition, Chinese enterprises are actively seeking talents in South Korea to acquire technical knowledge.

"The company's massive investment is the best way to revitalize the national economy and create employment opportunities." Minister Bai Yun responded to SK Hynix in establishing a new production line plan in Lichuan, southeastern Seoul. SK Hynix said recently that it expects to invest 3 trillion and 500 billion won in 2020.