The South Korean Ministry of Trade, Industry and Energy (MOTIE) announced an investment of 36.4 billion won (US$24.79 million) to fund 48 next-generation semiconductor research and development projects by 2025. This effort focuses on processing in memory (PIM). Chips, advanced packaging, on-device AI semiconductors, system semiconductors, and combined power semiconductors.
Large-scale investment in core semiconductor technology
As reported by ZDNet Korea, the industry committee’s 36.4 billion won investment will be part of South Korea’s 2025 Industrial Technology Innovation Comprehensive Implementation Plan. Of this amount, 17.9 billion won will be allocated to PIM chip development, with funding of approximately 1 billion won per year per project over a three- to four-year cycle.
PIM chip development funding supports memory interface and commercial platform technologies that leverage the PIM computing architecture. It will also fund efforts to commercialize SCM-controlled semiconductor technology and manufacturing equipment based on phase-change memory (PRAM) and magnetic random access memory (MRAM).
The advanced packaging division will receive 17.8 billion won for 13 new projects. Recognizing the growing importance of advanced packaging, MOTIE aims to support relevant technologies, materials, components and equipment. Each project receives approximately 1 billion won per year and the development cycle lasts 3 to 7 years.
The Ministry of Industry will allocate 4.3 billion won to the on-device AI semiconductor project. These include edge computing chips for low-power robots and PHM chips for industrial automation. Each project will receive 1.5 billion won per year, with a maximum development cycle of four years.
The Ministry of Industry has invested 10.5 billion won to develop system semiconductors in five industries with high potential for commercialization: automobiles, energy, biotechnology, drones/urban air mobility, and IoT/smart home appliances. Each project will receive approximately 1.83 billion won per year over a three-year development cycle, and the companies will cooperate in research and development.
The Ministry of Industry plans to invest 21.1 billion won in 18 projects to advance compound power semiconductor technology. These projects will focus on commercializing power converters, power integrated circuits, and materials technology, and will each receive 1.2 billion won per year over a four-year cycle.
Innovation and emerging technologies in manufacturing
On another front, the Ministry of Industry plans to invest 100 million won in South Korea to establish a mini-fab that is scheduled to launch in 2025. These facilities will focus on 12-inch wafers and advanced semiconductor front-end processing, strengthening the domestic supply chain for semiconductor materials and contributing to the development of components and equipment while strengthening the global competitiveness of chip makers. .
The Ministry of Industry will invest 30.2 billion won in the “K-sensor technology development project” to reduce dependence on imports of sensor products. According to Fortune Business Insights, each project will receive between 500 million and 1 billion won annually over a three- to seven-year development cycle and will foster innovation in South Korea’s sensor technology industry.
In the future automobile field, the Ministry of Industry has allocated 4.6 billion won for semiconductor research and development. The investment will include ultra-high-speed communication semiconductors for Level 4 autonomous vehicles, Ethernet switches that enable data transmission speeds in excess of 10 Gbps, software-defined vehicle (SDV) communication architectures, and functional electronic control units (ECUs). focus on the development of
Additionally, 4.2 billion won will be invested in the SDV AI Accelerator Semiconductor Technology Development Project, which aims to develop 1,000 TOPS AI accelerator and application processor software.
Strategic investment outlook
South Korea’s 2025 Comprehensive Industrial Technology Innovation Project is expected to involve a record investment of 5.7 trillion won. Of this amount, approximately 1.25 trillion won will be allocated to six strategic industries: semiconductors, secondary batteries, displays, biotechnology, future automobiles, and next-generation robots.
Amid political uncertainty, South Korea plans to allocate a record 247 trillion won in policy financing in 2025 through institutions such as the Korea Industrial Bank (KDB). According to the Mainichi Keizai Shimbun and JoongAng Ilbo, the funds will be used for AI, semiconductors, aerospace, secondary batteries, and biotechnology.
