South Korea bets $205M on semiconductor packaging to maintain competitiveness



Analysis South Korea bets $205M on semiconductor packaging to maintain competitiveness Government funding boosts R&D, but weak horizontal integration and supply chain vulnerabilities could jeopardize push John LeeSeptember 11, 2024 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON Samsung's Heterogeneous Integration semiconductor package, Dec. 1, 2023 \| Image: Samsung South Korea’s trade ministry announced a $205 million (274.4 billion won) investment in the country’s semiconductor packaging industry to keep pace in the rapidly advancing fields of artificial intelligence (AI) and high-performance computing (HPC). However, despite this investment and a newly signed memorandum of understanding (MOU) between key industry players, the country’s historical focus on vertical integration and weak horizontal collaboration raises concerns about whether it can remain competitive in advanced packaging technologies. LACK OF HORIZONTAL INTEGRATION South Korea’s success in memory chip manufacturing has been largely built on vertical integration, where companies like Samsung Electronics and SK Hynix © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01Why South Korea cannot rebalance growth without stronger regional clusters 02Samsung, SK Hynix rejection exposes South Korea’s chip-grid financing problem 03Trump’s Cheongung social media post tests Seoul’s refusal to arm to Ukraine 04Lee Jae Myung risks public trust as South Korea rewires its justice system 05South Korea turns to Central Asia as Iran war tests its energy resilience 06Houthi seizure of Mokha sharpens South Korea’s Hormuz deployment dilemma 07Japan’s stronger yen may cut Korea’s import bill while raising funding costs 08South Korea leans on Europe as Hormuz deployment choices grow narrower

Analysis

South Korea bets $205M on semiconductor packaging to maintain competitiveness

Government funding boosts R&D, but weak horizontal integration and supply chain vulnerabilities could jeopardize push

John LeeSeptember 11, 2024

South Korea bets $205M on semiconductor packaging to maintain competitiveness

Samsung's Heterogeneous Integration semiconductor package, Dec. 1, 2023 | Image: Samsung

South Korea’s trade ministry announced a $205 million (274.4 billion won) investment in the country’s semiconductor packaging industry to keep pace in the rapidly advancing fields of artificial intelligence (AI) and high-performance computing (HPC).

However, despite this investment and a newly signed memorandum of understanding (MOU) between key industry players, the country’s historical focus on vertical integration and weak horizontal collaboration raises concerns about whether it can remain competitive in advanced packaging technologies.

LACK OF HORIZONTAL INTEGRATION

South Korea’s success in memory chip manufacturing has been largely built on vertical integration, where companies like Samsung Electronics and SK Hynix

South Korea bets $205M on semiconductor packaging to maintain competitiveness

LATEST ANALYSIS

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John Lee