Yoon calls on public, private sectors to unite for semiconductor ‘war’

Politics

Published: 08 Jun. 2023, 17:43 Updated: 08 Jun. 2023, 18:08

Yoon calls on public, private sectors to unite for semiconductor ‘war’

President Yoon Suk Yeol, center, presides over an economy and public livelihood meeting focusing on national semiconductor strategy at the Blue House Yeongbingwan in central Seoul Thursday. [PRESIDENTIAL OFFICE]

President Yoon Suk Yeol underscored Thursday that the public and private sectors have to tackle the challenge of becoming globally competitive in the semiconductor industry together, waging an all-out "industrial war."

"Semiconductor competition is an industrial war, and it's an all-out war," Yoon said a meeting on economy and public livelihood at the Blue House Yeongbingwan. "So, the public and private sectors will have to put their heads together as a team to tackle this challenge."

Yoon pointed out that "geopolitical issues have become the biggest management risk for companies," noting this is a problem that private companies cannot resolve alone.

This comes as Korea's position leading the memory semiconductor sector for over 20 years has recently been threatened by competitors, alongside growing uncertainties from the intensifying strategic competition between the United States and China.

The meeting was attended by some 60 officials and industry leaders and experts, focusing on a national semiconductor strategy.

"The competitiveness of our high-tech industries is the cornerstone that protects our economy and is truly the root of creating quality jobs," Yoon said.

"If we are to be victorious in the semiconductor war, private sector innovation and the government's leading strategy are needed simultaneously."

The semiconductor industry accounts for 20 percent of Korea's exports and 55 percent of manufacturing equipment investment, according to the presidential office.

The meeting sought for ways to increase the self-reliance of the chips industry, including securing stable supplies of materials, parts and equipment, as well as core technologies and manpower, especially in light of growing global supply chain instability. It also discussed ways to strengthen memory chip production and develop strategies to prevent corporate leaks.

Yoon highlighted that the government needs to up its game when it comes to designing systems and creating solid infrastructure so that companies, investors and talented personnel can gather together.

He stressed that through passing the K-Chips Act, corporate investment incentives have been expanded and regulations on universities with semiconductor-related majors have been greatly eased.

In late March, the National Assembly passed the K-Chips Act, giving bigger tax incentives to chipmakers and other strategic businesses through a revision to the Act on Restriction of Special Taxation.

He also pointed to a Korean government plan to attract 300 trillion won ($230 billion) in private investment to create the world's largest advanced system semiconductor cluster in Yongin, Gyeonggi, just outside of Seoul.

The meeting was attended by related ministers, People Power Party lawmakers and representatives from companies including Samsung Electronics, SK Hynix and AI technology startup Rebellions. It was also attended by researchers and graduate students specializing in semiconductor-related studies.

This is the second government meeting of its kind on high-tech industries since a one on battery strategy was held on April 20.

In his closing remarks, Yoon stressed that "semiconductors are our life, national security and our industrial economy itself" and ordered ministers to "remove any regulations that become obstacles," said the presidential office.

He also stressed that "science and technology cannot be done without solidarity between countries," while calling for a "second leap" in the face of such fierce global competition in the semiconductor sector.

BY SARAH KIM [kim.sarah@joongang.co.kr]