Invest Korea

Korea’s global semiconductor market share as of 2020 was 18.4%, continuing to rank second in the world since 2013.
In particular, Korea accounted for 56.9% of the global Memory semiconductor market,
with DRAM at 71.1% and NAND at 44.9%. Korean-made Memory semiconductors possess the world’s best technology.
Korea continues to focus on R&D and investment in order to keep its competitive advantage. In addition,
Korea is pushing to expand its foundry market share based on ultra-fine processing technology.

Korea’s total export of semiconductors in 2020 amounted to USD 99.2 billion, of which Memory semiconductors
accounted for USD 63.9 billion or 64.4%. Semiconductors are one of Korea’s principal export items,
accounting for 19.3% of total exports as of 2020, leading the Korean economy and industry.

Many global companies in the fields of materials, parts, and equipment based on semiconductors—one of Korea’s flagship industries—are entering Korea. Lam Research, a US semiconductor etching and deposition equipment maker, established Lam Research Manufacturing Korea in 2011. Since then, its domestic production has grown continuously, and as a result, domestic production equipment unit no. 5000 was delivered in 2019.

The company plans to open an R&D Center in Yongin by the end of this year in order to develop core technologies and equipment within Korea, playing an important role in strengthening the industrial ecosystem in the country.

Global Wafers, a Taiwanese silicon wafer manufacturer, established MEMC Korea and completed the expansion of a second factory in 2019, which produces 12-inch silicon wafers.

ASML, the exclusive supplier of advanced EUV exposure equipment, plans to build a state-of-the-art EUV cluster in Hwaseong-si. Many other semiconductor materials companies, such as TOK, DuPont, and Merck, are expanding their investment for production within Korea. Onsemi Korea, which develops semiconductors for vehicles, also plans to expand investment in Korea and respond to the growth of the electric vehicle market.

The Korean government has announced the System Semiconductor Development Strategy (April 2019),
the AI Semiconductor Industry Development Strategy (October 2020), and the K-Semiconductor Strategy (May 2015).
The government has a strong willingness to nurture system semiconductors beyond memory semiconductors and
foster Korea into a global semiconductor powerhouse.

With the goal of establishing a world-class semiconductor supply chain by 2030, the investment tax deduction rate
will be raised up to five times or more (6-10%). A new special fund for facility investment (including semiconductors)
worth at least KRW 1 trillion will be established in order to support investment in foundry, materials, parts,
equipment, and packaging facilities.

Semiconductor companies are concentrated in the Gyeonggi-do region, with some in Chungcheongbuk-do
and Chungcheongnam-do. Pangyo-Giheung-Hwaseong-Pyeongtaek-Onyang and Icheon-Cheongju will be
connected to Yongin to complete the K-Semiconductor Belt, the world’s largest semiconductor supply chain.

Samsung Electronics plans to build a new factory in Pyeongtaek, in addition to Suwon, Giheung, and Hwaseong,
which will form the world’s largest semiconductor production belt in the city. SK Hynix will build a new
semiconductor cluster on a scale of 4.48 ㎡ in Yongin. Starting construction in 2021, SK Hynix will start mass
production from 2024. In the Yongin cluster, a specialized complex of materials, parts, and equipment will be
established so that both buyers and suppliers can jointly develop key materials, parts, and
equipment items based on a large-scale cooperation model.