South Korean government: South Korea wants to compete with Taiwanese chipmaker TSMC by creating KSMC; will it be successful, it requires mammoth investment todayheadline

It looks like Taiwan and South Korea will be at logger heads in the coming days as the South Korean government is currently planning on building a government-backed chipmaking entity which would take on TSMC. Making their own kind of TSMC, and renaming it ‘KSMC’ has been in the pipeline of the South Korean government for some time, and reportedly, they may now put things into implementation, based on the massive growth of the chipmaking market across the world, with the demand for the same increasing manifold in 2023 and 2024, backed by the AI wave, as well as Nvidia and Apple’s exponential rise.

Is the South Korean government investing into KSMC?

A long-term government investment in South Korea could become a reality, which could mean an investment of KRW 20 trillion ($13.9 billion) in KSMC, according to Semiconductor Industry Association’s Ahn Ki-hyun. The massive investment would reportedly bring in economic gains of KRW 300 trillion ($208.7 billion) in the next two decades, provided that market conditions are stable enough for things to survive any huge global recession.

Forming KSMC and reducing reliance on the Samsung Foundry is being seen as an incoming advantage for the South Korean administration as well as the chipmaking industry there, but there are a lot of manufacturing developments that are needed to be done, along with bringing in teams of top-notch developers from across the world.

FAQs:

Is the Samsung Foundry working in South Korea?
Yes, South Korea sees a full-fledged operation of Samsung Foundry, which is the major chip contract manufacturer in the country.