The technological gap between Samsung and TSMC has stretched to the point where competing with the Taiwanese foundry giant has become difficult. On the one hand, we have a manufacturer that successfully achieved a 60 percent yield in the trial production of its 2nm process, while Samsung failed to jumpstart its 3nm GAA technology. As TSMC continues to seize a bigger market share quarter after quarter, South Korea is reportedly exploring a potential competitor that will be funded by the state to take on Samsung’s rival, and with a fitting name called KSMC.
The plan to take on TSMC appears to be a highly ambitious one, with the initial investment for KSMC said to be almost $14 billion
KSMC, or Korea Semiconductor Manufacturing Company, could be formed to bolster South Korea’s chipmaking division, with The Korea Bizwire reporting that the idea was hatched during a seminar held by the National Academy of Engineering of Korea (NAEK) on December 18. The goal of KSMC would be to create a balanced ecosystem of foundries and fabless manufacturers that would go a long way towards creating cutting-edge technologies. Unfortunately, the plan to make KSMC a reality is not going to be cheap.
Industry experts estimate that it will take around 20 trillion Korean won or a $13.9 billion investment for KSMC. The plus side is that the operation could generate 300 trillion Korean won, or $208.7 billion in economic benefits, by 2045. Setting up KSMC will also help support other semiconductor firms that are focused on mass producing wafers on the more mature nodes of 10nm. Professor Kwon Seok-jun of Sungkyunkwan University said that TSMC can maintain a balanced ecosystem thanks to the existence of foundries like UMC and PSMC.
These two focus on manufacturing wafers on older lithography, while TSMC focuses on advanced technology. Professor Kwon Seok-jun said that with KSMC launching with government support, the same ecosystem could exist in South Korea. Naturally, some concerns were raised about the project, particularly KSMC’s ability to handle cutting-edge manufacturing processes when under the state’s umbrella. On this point, SK hynix CEO suggested that Samsung’s legacy purposes should be re-purposed.
The Semiconductor Industry Association’s Ahn Ki-hyun has highlighted the importance of receiving government funds in a timely fashion. Subsidies and tax credits will enable KSMC to allow South Korea to return to the top rank of the semiconductor food chain by 2047.
News Source: The Korea Bizwire
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
Follow Wccftech on Google to get more of our news coverage in your feeds.
