{"id":2197640,"date":"2022-07-22T12:27:48","date_gmt":"2022-07-22T03:27:48","guid":{"rendered":"https:\/\/www.nknews.org\/pro\/?p=2197640"},"modified":"2023-04-05T16:12:08","modified_gmt":"2023-04-05T07:12:08","slug":"semiconductor-wars-south-korea-puts-chips-at-center-of-national-security","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/07\/semiconductor-wars-south-korea-puts-chips-at-center-of-national-security\/","title":{"rendered":"Semiconductor wars: South Korea puts chips at center of national security"},"content":{"rendered":"

Semiconductors serve as the lifeblood of most advanced economies, enabling high-tech goods such as mobile devices, computers, household appliances and automobiles. Prior to COVID-19, powerful countries penned policies that would allow them to procure a larger market share of semiconductor production in recognition of their accelerating importance.\u00a0<\/span><\/p>\n

Now, amid an unremitting <\/span>supply chain crisis<\/span><\/a>, nations are revisiting their approaches. Overarching endeavors such as <\/span>Made in China<\/span><\/a> or <\/span>Make in India<\/span><\/a>, through which Beijing and New Delhi funnel hundreds of billions of dollars into their semiconductor industries, reflect the belief that reshoring is critical.<\/span><\/p>\n

These inward-facing policies seek to expand domestic semiconductor production and R&D in order to build <\/span>technological self-sufficiency<\/span><\/a>. This means being able to operate without <\/span>overt reliance<\/span><\/a> on global supply chains and proprietary research for higher technological production capacities and manufacturing.<\/span><\/p>\n

New South Korean President Yoon Suk-yeul is a big proponent of this approach, and he appears poised to strengthen the country\u2019s global technological foothold via special focus on the semiconductor industry, a move that could benefit not only the country\u2019s economy but also its long-term security.<\/span><\/p>\n

MOON PUSHES SEMICONDUCTORS<\/b><\/p>\n

Yoon’s predecessor also recognized the importance of ramping up domestic semiconductor manufacturing. But in the face of slowing economic growth and a <\/span>widening trade surplus<\/span><\/a>, the Moon administration focused on fortifying South Korea\u2019s high-tech industries as a long-term strategy with mainly economic objectives.\u00a0<\/span><\/p>\n

Moon Jae-in\u2019s <\/span>five-year plan<\/span><\/a> announced in 2017 outlined goals to develop both physical and digital infrastructure to broaden access to social services and create jobs. And <\/span>the State Affairs Planning Advisory Committee<\/span><\/a>, charged with implementing the plan, established a committee for the <\/span>express purpose<\/span><\/a> of researching and developing core digital infrastructure for the internet of things (IoT), 5G, artificial intelligence and other future-oriented industries \u2014 known as Fourth Industrial Revolution technologies (4IT).\u00a0<\/span><\/p>\n

Moon strove to leverage the myriad strengths of the South Korean economy \u2014 its semiconductor industry chief among them \u2014 to minimize future vulnerabilities that could arise in crises due to <\/span>global dependency<\/span><\/a>. The administration achieved some success on this front but was ultimately bogged down by a litany of socioeconomic issues, such as the <\/span>housing crisis<\/span><\/a> and COVID-19.\u00a0<\/span><\/p>\n

The former president was thus <\/span>unable to realize<\/span><\/a> his lofty <\/span>goals<\/span><\/a> of transforming South Korea into a bigger global foundry manufacturing leader and securing a 10% market share of fabless revenue by 2030.<\/span><\/p>\n

\"\"

President Yoon Suk-yeol and U.S. President Joe Biden shaking hands at a summit in Seoul in May 2022 | Image: South Korean Presidential Office<\/p><\/div>\n

<\/div>\n

YOON PICKS UP THE TORCH<\/b><\/p>\n

Despite his ideological differences from Moon, Yoon is set to continue increasing investment in semiconductors and charting a new course for public-private partnerships in high-tech sectors.\u00a0<\/span><\/p>\n

Ahead of the presidential election, Yoon <\/span>pledged<\/span><\/a> to expand 4IT R&D and develop talent in the private sector and academia through incentives and tax benefits, as well as to invest $190 billion to strengthen South Korean data networks, AI R&D labs and both foundry semiconductor manufacturing and chip design.\u00a0<\/span><\/p>\n

Yoon\u2019s People Power Party has also outlined plans to increase the size of the 4IT workforce, including foundry employees, by 100,000 during his term.<\/span><\/p>\n

Built on a <\/span>free-market approach<\/span><\/a>, Yoon\u2019s economic planners could theoretically engender cooperation between conglomerates, small- and medium-size enterprises and academia by reducing regulations that stood in the way, with the goal of maintaining South Korea\u2019s long-term technological self-sufficiency.<\/span><\/p>\n

In accordance with this goal, Yoon nominated Lee Jong-ho, a <\/span>professor<\/span><\/a> of electrical and information engineering and the director of Seoul National University\u2019s semiconductor joint research center, for minister of science and ICT. He holds several <\/span>patents<\/span><\/a> in semiconductor chip design, as well as a \u201cbulk FinET\u201d patent on 3D semiconductor wafer manufacturing.<\/span><\/p>\n

Lee has said he strongly believes in transforming South Korea into a leader in both foundry manufacturing and chip R&D. During his <\/span>confirmation speech<\/span><\/a>, he emphasized the need for South Korea to become a global leader in semiconductor design and manufacturing, equating national competitiveness with national security.\u00a0<\/span><\/p>\n

Yoon received \u201c<\/span>semiconductor tutoring<\/span><\/a>\u201d from Lee in 2021 before the professor formally joined Yoon\u2019s campaign, and the president has since echoed Lee\u2019s stance on the national security implications of semiconductors.<\/span><\/p>\n

\u201cWars are no longer being fought with guns, but with semiconductors,\u201d Yoon <\/span>said<\/span><\/a> in April, adding that \u201csemiconductors are the core of national economy and security.\u201d He reiterated this notion while <\/span>visiting<\/span><\/a> Samsung Electronics\u2019 Pyeongtaek semiconductor manufacturing plant in May with U.S. President Joe Biden.<\/span><\/p>\n

\"\"

Yoon meets with science and ICT minister Lee Jong-ho on July 15, 2022 | Image: South Korean Presidential Office<\/span><\/p><\/div>\n

EARLY SUCCESS TO LASTING CHANGE?<\/b><\/p>\n

The Yoon administration has already seen success in its plans to achieve semiconductor leadership.<\/span><\/p>\n

For one, Biden\u2019s visit to South Korea signaled to state governments in the U.S. and to ROK corporations that future cooperation is ahead. Samsung has augmented a <\/span>2021 pledge<\/span><\/a> so that it is now due to invest $356 billion over five years in <\/span>key sectors<\/span><\/a>, including $151 billion for boosting memory-chip design and semiconductor manufacturing and <\/span>$17 billion<\/span><\/a> to construct a foundry in Taylor, Texas.\u00a0<\/span><\/p>\n

Following the U.S-ROK summit, South Korea also <\/span>formally joined<\/span><\/a> the newly launched Indo-Pacific Economic Framework (IPEF), which will set standards in areas like supply chain resilience and digital economy. While IPEF is broad and not yet well-defined, South Korea\u2019s participation will likely expedite the implementation of policies to ramp up semiconductor manufacturing and R&D.\u00a0<\/span><\/p>\n

The framework also provides Yoon a greenlight to pursue long-term public-private partnerships abroad that will help establish a regional semiconductor supply chain less susceptible to global disruptions.\u00a0<\/span><\/p>\n

Through this, Seoul can check off several South Korean national security concerns. Diversifying manufacturing and fortifying future-oriented R&D partnerships with the U.S. puts Seoul in a better position to make valuable contributions as an ally while improving the country\u2019s <\/span>economic competitiveness<\/span><\/a>.<\/span><\/p>\n

Edited by Bryan Betts<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Domestic Politics<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a>Technology & Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

Semiconductors serve as the lifeblood of most advanced economies, enabling high-tech goods such as mobile devices, computers, household appliances and automobiles. Prior to COVID-19, powerful countries penned policies that would allow them to procure a larger market share of semiconductor production in recognition of their accelerating importance.\u00a0 Now, amid an unremitting supply chain crisis, nations […]<\/p>\n","protected":false},"author":3665,"featured_media":2197646,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[21],"tags":[24,27,28,29],"yoast_head":"\nSemiconductor wars: South Korea puts chips at center of national security - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2022\/07\/semiconductor-wars-south-korea-puts-chips-at-center-of-national-security\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Semiconductor wars: South Korea puts chips at center of national security - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"Semiconductors serve as the lifeblood of most advanced economies, enabling high-tech goods such as mobile devices, computers, household appliances and automobiles. 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