South Korea's Ministry of Trade, Industry, and Energy (MOTIE) has announced a KRW36.4 billion (US$24.79 million) investment to fund 48 next-generation semiconductor R&D projects by 2025. The initiative focuses on Processing-In-Memory (PIM) chips, advanced packaging, on-device AI semiconductors, system semiconductors, and compound power semiconductors.
Major investment in core semiconductor technologies
As reported by ZDNet Korea, MOTIE's KRW36.4 billion investment forms part of South Korea's 2025 Comprehensive Implementation Plan for Industrial Technology Innovation. Of this, KRW17.9 billion is allocated to PIM chip development, spanning a 3 to 4-year cycle with annual funding of approximately KRW1 billion per project.
The PIM chip development funding will support memory interfaces and commercial platform technologies leveraging PIM computing architecture. It will also fund SCM control semiconductor technologies and commercialization efforts for manufacturing equipment based on phase-change memory (PRAM) and magnetic random access memory (MRAM).
The advanced packaging sector will receive KRW17.8 billion for 13 new projects. Recognizing the growing importance of advanced packaging, MOTIE aims to support associated technologies, materials, components, and equipment. Each project will receive approximately KRW1 billion annually, with development cycles lasting 3 to 7 years.
MOTIE will allocate KRW4.3 billion to on-device AI semiconductor projects. These include edge computing chips for low-power robotics and PHM chips for industrial automation. Each project will receive KRW1.5 billion annually, with a development cycle capped at four years.
For system semiconductor development, MOTIE has dedicated KRW10.5 billion, targeting five industries with high commercialization potential: automotive, energy, biotechnology, drones/urban air mobility, and IoT/smart home appliances. Each project will receive about KRW1.83 billion annually over a 3-year development cycle, with enterprises collaborating on R&D efforts.
MOTIE plans to invest KRW21.1 billion in 18 projects to advance compound power semiconductor technologies. These projects will focus on commercializing power conversion devices, power integrated circuits, and material technologies, with each receiving KRW1.2 billion annually over a 4-year cycle.
Innovation in manufacturing and emerging technologies
On another front, MOTIE intends to invest KRW100 million to establish mini fabs in South Korea, scheduled to launch in 2025. These facilities will focus on 12-inch wafers and advanced semiconductor front-end processes, strengthening the domestic supply chain for semiconductor materials, components, and equipment while enhancing chip manufacturers' global competitiveness.
To reduce reliance on imported sensor products, MOTIE will invest KRW30.2 billion in the "K-Sensor Technology Development Project." Each project will receive between KRW500 million and KRW1 billion annually over a development cycle of 3 to 7 years, fostering innovation in South Korea's sensor technology industry, according to Fortune Business Insights.
In the future vehicle sector, MOTIE has earmarked KRW4.6 billion for semiconductor R&D. The investment will focus on developing ultra-high-speed communication semiconductors for Level 4 autonomous vehicles, Ethernet switches enabling data transmission speeds above 10 Gbps, software-defined vehicle (SDV) communication architectures, and functional electronic control units (ECUs).
Additionally, the SDV AI accelerator semiconductor technology development project will receive an investment of KRW4.2 billion, aimed at developing AI accelerators rated at 1,000 TOPS and driving software for application processors.
Strategic investment outlook
South Korea's 2025 Comprehensive Industrial Technology Innovation Project will see a record-breaking investment of KRW5.7 trillion. Of this, approximately KRW1.25 trillion will be allocated to six strategic industries: semiconductors, secondary batteries, displays, biotechnology, future vehicles, and next-generation robotics.
Amid political uncertainties, South Korea plans to allocate a record-breaking KRW247 trillion in policy financing through institutions like the Korea Development Bank (KDB) in 2025. According to Maeil Business Newspaper and JoongAng Ilbo, this funding will target advanced industries, including AI, semiconductors, aerospace, secondary batteries, and biotechnology.