Government Support for System Semiconductor Sector
A system semiconductor design support center which allows fabless companies to design chips 24 hours a day has opened in Pangyo, Gyeonggi Province.
The Korean government will invest US$1 billion in developing next-generation intelligent semiconductors and a 100 billion won system semiconductor investment fund will start investing in related companies in July. These are follow-up measures to the government’s System Semiconductor Vision and Strategy announced in April 2019.
An opening ceremony for the System Semiconductor Design Support Center was held on June 29 at Gyeonggi Business Growth Center in Pangyo, with the attendance of Minister of Trade, Industry and Energy Sung Yun-mo and Vice Minister of Science and ICT Jang Seok-young.
The center will provide one-stop support to fabless companies from their foundation to growth in order to sharpen their competitiveness. If a developer has an idea, he or she can design a chip using semiconductor design tools at the center without any cost at any time 24 hours a day and 365 days a year.
The government will partially pay for the costs for developing a prototype of a chip designed by a fabless company. It will also assist fabless companies in commercializing their chips in order to help them expand their semiconductor design intellectual property (IP) and promote the use of Korean IP.
The center will also provide analysis and measurement infrastructure for evaluating the normal operation of prototypes.
The Korean government is planning to use the center as an outpost for the growth of fabless companies and the development of the system semiconductor industry. At the same time, it will maximize the effects of its support by linking the center with various support programs such as revving up business foundation, matching promising companies with investors and technology seminars.
The Korean government has sought to establish a design and manufacturing foundation for fabless companies and foundry firms. It has also endeavored to create an environment conducive to investment in these companies. In December 2019, it established Korea's only batch-type 6-inch SiC-based power semiconductor process in Busan.
The Korean government will support foundry investment by including system semiconductor manufacturing technology in new growth engine and original technologies eligible for tax deduction under the Enforcement Decree of the Restriction of Special Taxation Act. In addition, it set up a system semiconductor fund amounting to 100 billion won in December 2019 to support fabless companies’ scaling up.
The MOTIE and the Ministry of Science and ICT are moving ahead with a 1 trillion won project to develop next-generation intelligent semiconductor technology. They are planning to launch a project group in August.