A gargantuan 500 billion won (approximately $329 million) in R&D is estimated to be invested by the South Korean government to mass produce next-generation power semiconductors under the “Ultra-Innovation Economy Project.” While it’s understood that these chips are required in AI data centers, a report states that these are being viewed as the next cash cow, as manufacturers like Samsung and SK hynix are already reaping the rewards of DRAM manufacturing.
There’s exceptional potential from increased manufacturing of power semiconductors for AI data centers, but there’s also a chance to boost competitiveness in energy, mobility, and defense
The total funding could reach 750 billion won (approximately $494 million), according to Sedaily, which also reports that South Korea’s Deputy Prime Minister and Minister of Economy and Finance, Koo Yun-cheol, held a meeting to discuss a roadmap to finalize the commercialization of cutting-edge power semiconductors.
The importance of power semiconductors in AI data centers is second to none, as given the energy requirements of these clusters, there’s an immense need for proper power stability and delivery. Power semiconductors also help to stabilize power grids as renewable energy begins to proliferate. AI data centers can also operate at peak power efficiency thanks to these power semiconductors.
Their application in defense, robotics, and aviation is slowly growing, with advanced chips such as SiC (silicon carbide) and gallium nitride (GaN) able to outperform traditional semiconductors in high-temperature tolerances, high voltages, and higher frequency environments. Analysts believe that power semiconductors don’t just hold the key to boosting the overall industry but also to increasing competitiveness across industries like those mentioned above.
South Korea appears to be concerned that if it’s unable to raise competitiveness in power semiconductors, its dependency on foreign companies and countries could become a major weakness later on. This concern has forced the government to jumpstart the R&D phase, which requires companies that need these power semiconductors to participate in the development stage.
The goal is to bundle the entire package, which includes materials, devices, modules, and a system demonstration, into a complete cycle to reduce the time gap between R&D and mass production. With AI data centers growing considerably, this is an excellent opportunity for South Korea to make its mark in another category.
News Source: Sedaily
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.
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