Plan for 1 chip fab puts Korea well behind U.S., Japan

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Plan for 1 chip fab puts Korea well behind U.S., Japan

Audio report: written by reporters, read by AI


SK hynix's planned chip plant in Yongin chip cluster [SK HYNIX]

SK hynix's planned chip plant in Yongin chip cluster [SK HYNIX]

Korea plans to build just one chip plant this year, contrasting sharply with the aggressive efforts of other countries to expand semiconductor manufacturing in a bid to dominate an industry pivotal to global power dynamics.
 
According to a report by industry association Semiconductor Equipment and Materials International (SEMI), construction on 18 new chip plants worldwide is set to begin this year, with most slated for operation between 2026 and 2027.
 
“The semiconductor industry has reached a pivotal juncture, with investments driving both leading-edge and mainstream technologies to meet evolving global demands,” said Ajit Manocha, president and CEO of SEMI, in a release.
 
“Generative AI and high-performance computing are propelling advancements in leading-edge logic and memory segments, while mainstream nodes continue to support critical applications in automotive, IoT and power electronics. The construction of 18 new fabs starting in 2025 underscores the industry’s commitment to innovation and significant economic growth.”
 
The United States and Japan each plan to break ground on four chip plants this year, according to the report.
 
Under its CHIPS Act subsidy program, the United States has aggressively courted global chipmakers, leading to investment commitments from domestic players like Intel and Micron as well as foreign giants such as TSMC and Samsung Electronics.
 
In Japan, TSMC is building a second chip plant, having completed its first manufacturing facility in Kumamoto last year after three years and two months of construction. The Japanese government is backing TSMC with 1.2 trillion yen ($7.6 billion) in subsidies, and the second facility, set to commence operations in 2027, will focus on producing 6- to 7-nanometer chips.
 
Korea’s efforts, meanwhile, appear muted by comparison, with only one project in the pipeline — SK hynix is set to build an advanced DRAM production line at the state-supported Yongin chip cluster this year.
 
Taiwan, for its part, has two projects lined up, and China has three.
 
“The longstanding balance of the United States focusing on proprietary technology, Japan on components, and Korea and Taiwan on manufacturing is beginning to crack,” said Kim Dae-jong, a business administration professor at Sejong University.
 
“With the United States and Japan ramping up their stakes, Korea urgently needs full-scale government support to maintain its manufacturing leadership and competitive edge.”
 
The country's attempt to strengthen its foothold in proprietary technology is also facing setbacks.
 
TSMC recently began mass production of 4-nanometer nodes at its Arizona factory, according to U.S. Commerce Secretary Gina Raimondo, as reported by Reuters.
 
Samsung, meanwhile, initially planned to produce 4-nanometer processors at its facility in Taylor, Texas, but shifted focus to 2-nanometer nodes, reportedly due to poor yields.
 
The company has delayed the mass production timeline for the Taylor plant from 2024 to 2026 as it seeks to resolve yield issues and minimize risks associated with a changing U.S. administration.

BY LEE GA-RAM, JIN EUN-SOO [[email protected]]
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