The massive image: South Korean tech giants like Samsung and SK Hynix have dominated reminiscence manufacturing for many years. Nevertheless, the nation’s president thinks the competitors within the processor market, the place Taiwan’s TSMC looms massive, has just lately change into considerably extra vital. A brand new help bundle goals to extend Korea’s competitiveness throughout the chip business.
South Korean President Yoon Suk Yeol just lately unveiled a $19 billion help program to spice up the nation’s semiconductor business. One of many areas the President harassed when outlining the bundle issues processors, a sector the place Korean firms at the moment lag behind business chief TSMC.
President Yoon acknowledged that South Korea has dominated reminiscence manufacturing for 30 years but in addition famous that “all-out nationwide warfare” has emerged to supply semiconductors for CPUs and GPUs. Nations just like the US and China have intensified their give attention to semiconductors because the pandemic revealed the fragility of tech provide chains. The AI growth has additionally made CPUs and GPUs extra essential. Latest earthquakes in Taiwan, the place TSMC makes probably the most superior chips, have additionally raised issues.
Though the Korean monetary bundle would not embody direct subsidies just like the latest US CHPS Act, it’ll provide tax credit and help for infrastructure and R&D. To deal with issues that the help will primarily profit massive firms, Yoon acknowledged that 70 % of affected companies will likely be small or medium-sized.
For instance, this system will help the institution of a mini-fab to assist fabless firms design and prototype chips. Yoon famous that Korea’s fabless market share at the moment hovers round one % and has struggled to shut the hole with TSMC.
Finance Minister and Deputy Prime Minister Choi Sang-mok addressed the priority surrounding the dearth of direct subsidies by highlighting the variations between how numerous international locations help their chip industries. With out instantly mentioning the American CHIPS Act, Choi mentioned direct subsidies are higher suited to international locations making an attempt to construct manufacturing capability from scratch. This necessity is mitigated in South Korea and Taiwan since they already possess sturdy services.
In associated information, Samsung has denied a latest Reuters report suggesting that its new HBM3 reminiscence chips failed exams for Nvidia’s upcoming AI GPUs because of extreme warmth and energy consumption. Reuters cited a number of sources, however Nvidia hasn’t publicly commented on the declare. Samsung’s Korean rival, HK Hynix, plans to launch HBME3 reminiscence this 12 months and progress to HBM4 in 2026.
