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KSMC to challenge TSMC with Samsung expertise?
South Korea considering forming KSMC to challenge TSMC with Samsung expertise. The name of this organization, Korea Semiconductor Manufacturing Company, is purely inspired by the Taiwanese Semiconductor Manufacturing Company (TSMC).
It is estimated that a $13.9 billion investment in KSMC could generate $208.7 billion by 2045. It would support smaller semiconductor firms, many of which are constrained by relying solely on Samsung’s advanced nodes under 10nm.
Recently, South Korean industry and academia have proposed (via KoreaBizWire) creating a KSMC to address challenges in Korea’s semiconductor sector with Samsung facilities.
The report suggests that this initiative aims to create a balanced ecosystem for both foundries and fabless companies by incorporating both advanced and legacy technologies.
At the event, the committee identified key challenges, including:
- Narrowing technological gaps with overseas competitors
- Weakening investment competitiveness
- Lack of fabless and packaging growth
- Talent outflow
- Excessive regulations.
Samsung managed to evolve its advanced semiconductor process nodes. However, the Foundry Division has failed to attract contract chip manufacturing deals, resulting in huge losses.
Notably, concerns were raised about whether KSMC could handle advanced processes. SK Hynix CEO Kwak No-jung suggested repurposing some of Samsung’s legacy facilities as part of the plan.
“Taiwan maintains a balanced ecosystem where companies like UMC and PSMC focus on legacy and middle-tech processes, complementing TSMC’s advanced manufacturing. This allows over 250 fabless firms to thrive naturally in Hsinchu,” said Professor Kwon Seok-jun of Sungkyunkwan University. “KSMC, launched with government support, could play a similar role in Korea.”
This unexpected plan to form a TSMC-like KSMC underscores Korea’s ambition to foster its position in the global semiconductor market apart from resolving weaknesses in the industry.
