Korea to inject $200 mn into semiconductor packaging R&D

South Korea lags far behind Taiwan, China and US in the semiconductor packaging market.

By Yeong-Hyo Jeong for The Korean Economic Daily – South Korea will inject 274.4 billion won ($200 million) into a state-run R&D project for semiconductor packaging technology, a key to producing the high-performance, low-power chips essential for AI applications.

The government spending aims to narrow the gap with Taiwan, China and the US in the semiconductor back-end process market, where Korea controls less than 10%. In contrast, it commands 60% of the memory chip market as of 2022, according to the Ministry of Science and ICT.

Samsung Electronics Chairman Jay Y. Lee (far right) inspects the semiconductor packaging line at the Samsung Cheonan Factory in Cheonan, Korea (Courtesy of Samsung)

The Ministry of Trade, Industry and Energy said on Wednesday the R&D spending plan had passed the preliminary feasibility test conducted by the science ministry. That means the government has given the go-ahead to the seven-year project running until 2031.

The plan represents a follow-up to a 65-billion-won, state-run project on semiconductor packaging R&D undertaken between 2018 and 2022.

Packaging refers to assembling different types of semiconductor chips and providing them to customers in one piece… Full article