CPU cores for mobile devices cost Korean companies more than 300 billion won (US$284 million) annually in royalties, so there are plans to manufacture them locally.
On October 23, the Ministry of Trade, Industry and Energy (MOTIE) announced a strategy to develop the semiconductor industry in a move-in ceremony for the new offices of the Korea Semiconductor Industry Association.
The strategy is aimed at nurturing the industry in stalled growth mode as the major growth engines of the Korean economy. A MOTIE official said, “We learned a lesson from the failure of the Japanese semiconductor industry. Japan’s market share in the global semiconductor market plummeted from 51% in 1988 to 18% last year.”
Among major policy tasks, the development of CPU cores for mobile devices is considered to be the most important one. CPU cores are essential parts of mobile application processors.