News
South Korea considers 480 billion yen public-private investment for new semiconductor foundry construction.
Wednesday, December 10, 2025 at 08:24 PM
South Korea is reportedly considering plans to build a new factory for contract semiconductor manufacturing, backed by a significant public-private investment amounting to 480 billion yen.
Context
South Korea is reportedly considering a significant public-private investment to establish a new semiconductor foundry, aiming to bolster its domestic chip manufacturing capabilities. The proposed project, valued at approximately 4.5 trillion won (around $3.06 billion) according to Reuters, would involve building a 12-inch, 40-nanometre facility. This new foundry is intended to support fabless firms and the production of legacy chips crucial for various applications, including cars and data centers.
The initiative seeks to reduce reliance on imported semiconductors, particularly for defense-related needs, and meet the growing demand in the AI era. The South Korean government plans to consult with major foundry companies such as Samsung Electronics and DB HiTek regarding the facility's setup, with executives from SK Hynix also participating in discussions. The Nikkei newspaper has framed the investment package as ¥480 billion.
This strategic move, reported on December 10, 2025, underscores South Korea's commitment to strengthening its semiconductor supply chain and maintaining its competitive edge in the global chip industry.
Sources (9)
Samsung Electronics, SK Hynix Eye 200 Trillion Won ...Samsung, SK hynix boost Korea chip investment ahead of ...Samsung, SK hynix to build $471B chip hub in South KoreaDB HiTek capitalizes on legacy chip retreat by Samsung, ...South Korea to consider setting up $3.1 bln foundry to grow ...South Korea Plans $3 Billion Semiconductor Foundry to ...South Korea to consider setting up $3.1 billion foundry ...South Korea to consider setting up $3.1 bln foundry to grow ...
Related Companies
SK Hynix
000660
DB HiTek
000990
Samsung Electronics
005930