Korea may create a “KSMC” to compete with TSMC’s dominance in semiconductors

South Korea’s solution to remaining a powerhouse in semiconductor manufacturing may be to establish a state-funded company called KSMC – Korea Semiconductor Manufacturing Company. The name, obviously, is a direct allusion to TSMC, showing that the country is looking for a response to the Taiwanese chip company’s dominance.

The proposal was discussed during a seminar at the National Engineering Academy of Korea (NAEK). Industry representatives discussed the importance of national subsidies to help South Korea remain competitive in the semiconductor segment. The idea would be an investment of 20 trillion won to establish KSMC. This is the equivalent of more than R$80 billion.

The person who spoke about values ​​was Ahn Ki-hyun, from the Semiconductor Industry Association. He claims that the investment could have a return reaching 300 trillion won by 2045. The value corresponds to R$1.26 trillion. There is a question, however, whether the initial investment would be sufficient to establish a KSMC, given the current situation of semiconductor infrastructure in South Korea.

KSMC would help Korea depend less on Samsung

The main idea behind KSMC would be to make the country less dependent solely on Samsung. The company is one of the largest chip manufacturers in the world, specializing mainly in advanced processes, below 10nm.

This means that South Korea is left behind when it comes to “mature” processes – that is, older technologies above 10nm, still widely used in industrial machines. Thus, despite having almost the same name as TSMC, KSMC would have the opposite function of the Taiwanese company.

Related news:

TSMC produces the most advanced chips in the world, but Taiwan still has mature processes with other companies such as UMC and PSMC. KSMC would do the opposite for South Korea, taking this role for itself and helping to boost the country’s semiconductor ecosystem as a whole.

Source: Tom’s Hardware