The technology gap between Samsung and TSMC has widened to the point where it will be difficult to compete with the Taiwanese foundry giant. On the one hand, some manufacturers have managed to achieve a 60% yield in prototyping with the 2nm process, while Samsung has failed to activate its 3nm GAA technology. As TSMC continues to gain significant market share quarter after quarter, South Korea is reportedly seeking a potential competitor with state funding and the aptly named KSMC to take on Samsung’s rival. are.
Plans to take on TSMC appear to be very ambitious, with initial investment in KSMC said to be nearly $14 billion.
KSMC (Korea Semiconductor Manufacturing Company) may be established to strengthen South Korea’s semiconductor manufacturing sector, and the idea was said to have been hatched during a seminar held by the National Institute of Engineering Korea (NAEK) on December 18. Korea Bizwire reported. KSMC will create a balanced ecosystem of foundries and fabless manufacturers that will significantly contribute to the creation of cutting-edge technologies. Unfortunately, plans to make KSMC a reality will not come cheap.
Industry experts estimate that KSMC will require an investment of approximately 20 trillion Korean won, or $13.9 billion. On the plus side, this project could generate an economic impact of 300 trillion Korean won, or $208.7 billion, by 2045. The creation of KSMC will also help other semiconductor companies focus on mass production of wafers at the more mature 10nm node. Professor Kwon Seok-joon of Sungkyunkwan University said that TSMC is able to maintain a balanced ecosystem thanks to the presence of foundries such as UMC and PSMC.
The two companies focus on manufacturing wafers using older lithography, while TSMC focuses on advanced technology. Professor Kwon Seok-joon said the same ecosystem could exist in South Korea if KSMC is launched with government support. Understandably, some concerns were raised about the project, especially the ability of KSMC, which is under the state umbrella, to handle the state-of-the-art manufacturing process. In this regard, SK Hynix CEO suggested that Samsung’s traditional purpose should be reused.
Ahn Ki-hyun of the Semiconductor Industry Association emphasized the importance of receiving government funds in a timely manner. With subsidies and tax credits, KSMC will enable South Korea to return to the top ranks of the semiconductor food chain by 2047.
News source: The Korea Bizwire
