56 trillion won semiconductor investment since the inauguration of the US Biden government
China also has huge funds for next-generation semiconductors
Joint fundraising among EU countries, semiconductor support in Europe
Korea, only fiddling with investment cards… “Governments unite, you shouldn’t miss the Golden Time”
[아시아경제 우수연 기자]As the US lowered its reliance on semiconductors concentrated in East Asia and implemented a strategy to strengthen its domestic supply chain, crises and opportunities also came to the Korean semiconductor industry. After Corona 19, global governments, which felt a crisis in the supply and demand of semiconductors, began to strengthen their domestic supply chains, increasing pressure on foreign investment from the standpoint of Korean companies, and at the same time facing new competitors at the national level.
Experts warn that the status of’K Semiconductor’ could be shaken if Korean semiconductor companies fail to respond swiftly to such changes in the semiconductor supply chain. Some advise that a unified policy between the government and private companies is necessary to maintain the competitiveness of the semiconductor industry, which has been proliferated by the national war.
卝蹂몃nat湲 븘씠肄
The US, EU, and China are competing for self-reliance in semiconductors
Recently, as semiconductor supply unrest hits the global manufacturing industry, the’semiconductor independence theory’ of each government has begun to emerge. Among them, the United States is the leading place. Since the inauguration of the Biden government, the US has been betting on increasing domestic semiconductor production through various incentives and direct investment.
Recently, the Biden government announced a plan to invest in infrastructure for the semiconductor industry and announced that it would invest 50 billion dollars (about 56 trillion won) in the semiconductor sector. This policy was announced on the 24th of last month after Intel, a leading US semiconductor company, announced plans to re-enter the foundry business and plans to invest in large-scale facilities.
The United States is drawing a big picture of realizing economic revival, such as revitalizing the manufacturing industry and creating jobs with the support of its own semiconductor companies, and controlling China by strengthening cooperation in the semiconductor industry with allies. President Biden’s invitation of Samsung Electronics to the global semiconductor supply shortage countermeasures meeting held on the 12th is analyzed with the intention of strengthening the semiconductor alliance with South Korea and pushing for investment and production in the US.
Another strong potential competitor, China, is also pouring huge amounts of money and dreaming of semiconductor independence. China has yet to secure high-tech process technology, but China’s financial power, which allows large-scale facility investment at the government level, is a potential threat. In addition, China is striking by targeting the next-generation semiconductor market, such as AI semiconductors, which do not yet have a clear stronghold. Bytedance, a large platform company in China that operates TikTok, has recently started to develop AI semiconductors by recruiting human resources for AI semiconductors.
According to the China E-Government Industry Development Institute (CCID), China occupied the No. 1 market share (25.9%) in the global AI semiconductor market as of 2019. AI semiconductor refers to a next-generation semiconductor used in computation to realize the learning ability and reasoning technology of AI technology. Since 2017, the Chinese AI semiconductor market has been growing rapidly at 50% annually, and in the same year, the market share in Asia including Korea was only 15.6%.
Europe, which experienced a severe supply and demand shortage in the automotive semiconductor market, recently raised funds jointly between countries to support the semiconductor manufacturing industry in Europe. In February, the European Union (EU) including Germany, France, Italy, Spain, and the Netherlands announced that they will introduce a semiconductor support program worth 50 billion euros (about 67 trillion won). Governments of each country have decided to support about 20-40% of the amount that companies invest in the semiconductor industry.
Competitors to keep pace with the U.S.’Token Betting’
Meanwhile, Taiwan, a direct competitor of K Semiconductor, is stepping up to the US’s aggressive semiconductor revival policy through large-scale investments. Intel recently announced that it will re-enter the foundry business, but at the same time, it also revealed its will to’expand cooperation with external foundries’ and discussed TSMC.
In line with this, TSMC has repeatedly revealed aggressive investment trends in the foundry market. In this year alone, it has unveiled its largest facility investment plan of 25 billion to 28 billion dollars (approximately 28 to 31 trillion won), and recently promised to invest 100 billion dollars (113 trillion won) over the next three years. It is interpreted as a strategy to solidify the No. 1 position in the global foundry market and widen the gap with Samsung Electronics amid rising expectations for the semiconductor supercycle.
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Following this, US Micron, which ranks third in the industry, is also attempting to diversify its business by reviewing the acquisition of Kioxia, a Japanese NAND flash company. There is also a prospect that Micron, which gained confidence thanks to the active support of the US government, can change the game of the NAND flash market by pursuing a large-scale M&A.
K Semiconductor still’manipulates’ only investment cards
On the other hand, Samsung Electronics, which represents K Semiconductor, has not yet come up with a clear facility investment or M&A plan. The plan to expand the Austin Foundry plant in the US is being reviewed with other candidates such as Arizona and New York, and has announced plans to carry out a meaningful M&A this year, but no news has been heard.
Because of this, in line with the global semiconductor supercycle and solving the supply and demand crisis, other countries are establishing active investment plans through cooperation with the government, but some point out that only Korea is behind. In February, the government announced a policy to support system semiconductor development worth 133 trillion won, but there is no direct support from the government, and the limitations of the method of private investment are also mentioned.
“Recognizing the importance of semiconductors, which is the pick of the industry, the government and the private sector must move with a strong sense of common goal.” “We must not miss the golden time of the semiconductor industry change period that responds at the level.”
Reporter Woo Woo-yeon [email protected]