South Korea’s Defense Acquisition Program Administration (DAPA) unveiled on Tuesday a comprehensive strategy to reduce the military’s reliance on foreign semiconductors. By 2030, the agency aims to establish the nation as a self-reliant producer of military-grade chips, addressing a critical vulnerability in its defense supply chain.

Despite being a global semiconductor powerhouse and its emergence as a major defense exporter, the nation depends almost entirely on imported chips to power advanced weapons systems, from fighter jets to unmanned drones.

This dependency exposes South Korea to geopolitical risks, particularly as semiconductors become increasingly intertwined with national security concerns.

As global competition intensifies, DAPA’s strategy aims to secure South Korea’s defense systems. However, experts told Korea Pro that the initiative faces significant technical, financial and geopolitical challenges that could hinder its success.

South Korean President Yoon Suk-yeol stands in front of a KF-21 Boramae fighter jet during the 2023 Seoul ADEX in Oct. 2023 | Image: ROK Presidential Office

FOREIGN DEPENDENCY: CRITICAL VULNERABILITY

The South Korean military’s reliance on imported chips despite the country being home to tech giants like Samsung and SK Hynix highlights a striking paradox.

“The disconnect between our commercial semiconductor capabilities and defense semiconductor dependence has become a critical security vulnerability,” Choi Gi-il, a professor at Sangji University’s National Security Division, told Korea Pro.

Weapon systems such as the KF-21 fighter jet and K2 Black Panther tank rely on imported semiconductors for critical functions like radar, navigation and fire control. Unmanned platforms, including drones and robots, have the highest foreign dependency, sourcing up to 98% of their semiconductors abroad.

Chips from Taiwan’s TSMC and the U.S. dominate South Korea’s defense supply chain.

This dependency not only threatens operational security during crises but also raises concerns about the potential for supply disruptions. Geopolitical tensions in Taiwan and export controls imposed by allies such as the U.S., further underscore the urgency of achieving self-reliance.

Recent global events, such as the semiconductor shortages during the COVID-19 pandemic and the ongoing war in Ukraine, have demonstrated the fragility of international supply chains, especially for critical technologies.

Shin Seung-ki, a senior analyst at the Korea Institute for Defense Analyses (KIDA), emphasized the lessons learned from Russia’s semiconductor struggles under sanctions. 

“Modern warfare demands an almost unlimited supply of semiconductors. The ability to domestically produce and supply these components is vital for sustaining prolonged conflicts.”

SK Group Chairperson Chey Tae-won holds a wafer as he speaks to President Yoon Suk-yeol in Feb. 2023 | Image: ROK Presidential Office

DAPA’S PLAN FOR SEMICONDUCTOR INDEPENDENCE

DAPA’s strategy to address this vulnerability rests on four key pillars: integrating semiconductors into advanced weapons, boosting domestic manufacturing capabilities, securing intellectual property and strengthening governance.

The plan emphasizes developing standardized chips that can power multiple weapons systems while supporting phased research and development to drive innovation.

To bolster domestic manufacturing, DAPA aims to establish defense-specific semiconductor foundries in partnership with government research institutes while nurturing specialized firms to create a resilient domestic ecosystem.

The agency also plans to provide financial incentives and tax benefits to encourage private sector participation in defense semiconductor production. By investing in a complete supply chain ecosystem, South Korea hopes to reduce reliance on foreign imports and create a sustainable base for future growth.

To ensure the reliability of these chips, DAPA is implementing advanced testing infrastructure and certification systems for defense-grade standards while enforcing preferential procurement policies for domestically produced semiconductors. This would allow South Korean military systems to meet the rigorous performance requirements necessary for modern warfare.

A specialized semiconductor division within DAPA will oversee the strategy, complemented by international partnerships and careful navigation of export controls and technology regulations. These initiatives are part of South Korea’s broader “Defense Innovation 4.0” strategy, which seeks to modernize the military and bolster national security.

“For South Korea, control over the entire semiconductor production process has become a strategic priority. Without it, our defense capabilities are at risk in times of crisis,” Shin said.

South Korean President Yoon Suk-yeol and U.S. President Joe Biden sign semiconductor wafers at the Samsung Semiconductor Campus in May 2022. | Image: ROK Presidential Office

TECHNICAL AND GEOPOLICAL HURDLES

Despite its ambitious goals, DAPA’s strategy faces several significant obstacles. From a technical perspective, military-grade chips must operate under extreme conditions, including high temperatures, electromagnetic interference and mechanical stress. Meeting stringent defense-grade standards will require significant investment and extended timelines.

South Korea’s defense sector also faces the challenge of integrating advanced chips into military software. Effective software integration is critical for ensuring chips can process battlefield data in real time without reliance on foreign operating systems.

“Even with self-sufficiency in chip manufacturing, dependence on foreign operating systems and embedded software would sustain a form of technological reliance,” Choi of Sangji University said. Without progress in software capabilities, South Korea risks replacing one form of dependency with another.

Financially, building a competitive defense semiconductor ecosystem will require immense resources. While South Korea’s commercial chipmakers provide a strong foundation, transitioning from consumer-grade to military-grade semiconductors involves significant research and development costs.

The timeline for achieving self-reliance by 2030 may also strain resources and risk delays.

South Korea must also navigate complex geopolitical considerations. Building a domestic defense semiconductor ecosystem could strain Seoul’s alliance with Washington, especially if the U.S. perceives South Korea as a competitor.

“The initiatives require careful navigation of international technology controls and export regulations with our allies, particularly given the sensitive nature of defense semiconductors and complex alliance dynamics in the Indo-Pacific region,” Choi said.

Samsung workers present their semiconductors, June 30, 2022 | Image: Samsung

LEVERAGING INDUSTRIAL STRENGTHS

Despite these challenges, South Korea’s commercial semiconductor industry provides a robust foundation for defense semiconductor development. Unlike TSMC, which focuses primarily on manufacturing, South Korea’s semiconductor giants like Samsung and SK Hynix have end-to-end capabilities, from design to production.

This positions South Korea uniquely among nations seeking defense semiconductor independence.

“By following through with such a plan, integrating civilian semiconductor capabilities with defense industry needs by 2030 appears achievable,” said Choi.

DAPA’s efforts to establish defense-specific foundries and incentivize private sector participation aim to reduce reliance on imports. These initiatives could not only secure domestic supply chains but also position South Korea as a key exporter of military-grade semiconductors.

“Advanced, cost-effective chips produced in South Korea could be highly attractive to both European and U.S. clients,” Shin of KIDA said, highlighting the growing global demand for defense semiconductors.

As global military systems become increasingly reliant on high-performance chips, South Korea’s ability to deliver reliable and affordable solutions could solidify its position in the international defense market.

Beyond economic gains, success in this initiative could enhance South Korea’s strategic positioning in the Indo-Pacific region. By reducing its dependency on foreign suppliers, South Korea would strengthen its autonomy in defense procurement and enhance its ability to respond to regional security challenges.

South Korean President Yoon Suk-yeol inspects members of the armed forces while he stands in front of South Korea’s latest ballistic missile, the Hyunmoo 5, Oct. 1, 2024 | Image: ROK Presidential Office

SECURING THE FUTURE

South Korea’s push for defense semiconductor independence signals a broader shift in how nations view the intersection of technology and security. The ability to control the production of military-grade semiconductors would secure South Korea’s defense systems and reduce vulnerabilities during crises.

As military systems become increasingly semiconductor-intensive and geopolitical competition intensifies, the country’s experience could provide valuable lessons for other nations seeking to balance commercial integration with strategic autonomy in critical technologies.

However, the road ahead will require sustained government support, public-private collaboration, and careful navigation of international partnerships.

By reducing foreign dependency and establishing a secure domestic supply chain, South Korea has the opportunity to reinforce its national security and solidify its position as a pioneer in defense modernization.

Edited by John Lee