South Korea's $10 Billion Semiconductor Bet: A Strategic Move

In a strategic move to bolster its global competitiveness, South Korea has announced plans to invest $10 billion in its semiconductor industry by 2025. This ambitious initiative, unveiled by President Yoon Suk Yeol, underscores the country's commitment to maintaining its status as a leading player in the global semiconductor market.

South Korea's semiconductor industry has been a key driver of its economic growth, accounting for 18.4% of the global market share in 2020. The country's strength lies in its memory semiconductor sector, which holds a significant global market share of 56.9%. However, to enhance its competitiveness, South Korea is focusing on developing its system semiconductor sector, which currently accounts for only 2.9% of the global market share.

The $10 billion investment plan includes financial support, R&D initiatives, and infrastructure development, benefiting the entire semiconductor supply chain, with a particular focus on SMEs. The government aims to create a Yongin Semiconductor Cluster and expedite related procedures. By supporting materials, components, and equipment sectors, South Korea seeks to foster growth and strengthen its global competitiveness.


The global semiconductor market is expected to grow at an annual rate of 5.4% in the coming years, presenting significant opportunities for South Korea. The country's investment strategy aligns with industry trends and aims to capitalize on the growing demand for semiconductors driven by artificial intelligence, IoT, and self-driving vehicles.

South Korea's investment strategy compares favorably with other major players in the global semiconductor market, such as the US and China. The US has pledged around $25 billion under the CHIPS Act, while China's 2021-2025 semiconductor industry plan involves investments totaling $150 billion. South Korea's targeted and strategic approach to semiconductor development focuses on enhancing its competitive edge in the memory semiconductor sector while fostering growth in the system semiconductor sector.


As the global semiconductor market continues to expand, South Korea's $10 billion investment in 2025 positions the country to capitalize on growth opportunities and maintain its competitive edge. By fostering innovation, strengthening its supply chain, and investing in human capital, South Korea is poised to solidify its status as a semiconductor superpower.