Although Samsung Foundry is a major chip contract manufacturer, the South Korean government mulls creating a government-funded contract chipmaker tentatively called Korea Semiconductor Manufacturing Company, KSMC, reports The Korea Biz Wire. Industry experts and academics have proposed the initiative.
The Semiconductor Industry Association's Ahn Ki-hyun called for a long-term government investment. Experts project that an investment of KRW 20 trillion ($13.9 billion) in KSMC could result in economic gains of KRW 300 trillion ($208.7 billion) by 2045. However, the big question is whether $13.9 billion is enough to establish a chipmaker. Another concern about publicly funded corporations like KSMC is whether they could develop advanced manufacturing technologies and land enough orders from clients to be profitable. It turns out that in addition to semiconductor makers, Korea needs more fabless software developers.
