Government to invest 95.7 billion won in R&D by 2025 to become self-reliant on semiconductors

Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, speaks at the 16th Innovation Growth BIG3 Promotion Conference held at Yonsei University College of Engineering in Seodaemun-gu, Seoul on the afternoon of the 18th. joint photo shoot

The government will invest 95.7 billion won in research and development (R&D) to make automotive semiconductors independent of supply and demand.

At the 16th BIG3 (Future Car, Bio-Health, System Semiconductor Semiconductor) Promotion Meeting held at Yonsei University College of Engineering in Seoul on the 18th, the government discussed ‘semiconductor industry major issues and countermeasures’.

The supply and demand shortage for automotive semiconductors was initially expected to ease in the third quarter of this year, but recovery is being delayed due to a supply crisis from Southeast Asia, including Malaysia. As of the end of last month due to the shortage of automotive semiconductors, the cumulative production disruption of domestic finished cars amounted to about 120,000 units.

Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki explained, “We have been providing urgent support for supply-demand response in the short term through expedited customs clearance, negotiation support, discovery of 11 replaceable items, and support for performance certification.”

The government plans to invest 95.7 billion won in R&D by 2025 to establish a domestic supply chain for automotive semiconductors and internalize technology in the medium term. Starting next year, it will start new R&D such as semiconductors for demand-based special-purpose vehicles (electric vehicles, autonomous vehicles, hydrogen vehicles, commercial vehicles) and battery control system-on-chip (SoC) for electric vehicles. In order to increase the reliability of domestic automotive semiconductors, 25 billion won will be invested between 2022 and 2024 to promote the car semiconductor performance evaluation certification support project.

Chungcheongnam-do, which is densely populated with electronics (electric and electronic device) companies that demand semiconductors for vehicles, will establish a ‘vehicle semiconductor R&D and reliability support center’ in Asan, Chungcheongnam-do together with the private sector. Currently, it is planning to carry out supplementary work first for approval of the central investment review for local finance.

In January of next year, it will analyze the domestic automotive semiconductor ecosystem and establish a national roadmap (short-term, mid-long-term) that can suggest directions for strengthening competitiveness. The government is also spurring support for small and medium-sized semiconductor design companies (fabless). Deputy Prime Minister Hong said, “In order to achieve a global market share of 10% by 2030, and to nurture 300 fabless companies and 5 unicorn companies (startup companies with an asset value of more than $1 billion), We will build a customized support system.”

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