Korea’s total export of semiconductors in 2022 amounted to USD 129.2 billion, of which memory semiconductors accounted for USD 73.8 billion or 57.46%. Semiconductors are one of Korea’s principal export items, accounting for 18.9% of total exports as of 2022, leading the Korean economy and industry.

Many global companies in the fields of semiconductor materials, parts, and equipment based - 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 in 2021, a new facility with an area of 5,170 m2 went into operation in Hwaseong, Gyeonggi. The company opened the Lam Research Technology Center in 2022 and is playing a crucial role in strengthening Korea's semiconductor ecosystem by developing key technologies and equipment in Korea. ASML, the exclusive supplier of advanced EUV exposure equipment, is building a state-of-the-art EUV cluster in Hwaseong. Many other semiconductor materials companies, such as TOK, DuPont, Merck, and Ulvak are expanding their investment for production within Korea. Numerous semiconductor materials, parts and equipment producers are operating their R&D businesses in Korea and collaborating in projects with global players operating in Korea.

Onsemi, a US developer of power semiconductors, invested KRW 1.4 trillion in Korea to build a SiC power semiconductor plant and a cutting-edge research center in Korea. Through these efforts, Onsemi plans to work together with the Korean auto industry and seek opportunities in the EV market with high growth potentials.

The Korean government's announcement of the K-Semiconductor Strategy (in May 2021), the Semiconductor Powerhouse Strategy (in July 2022), and the Strategy for Strengthening the System Semiconductor Ecosystem (in March 2023) shows its strong commitment to build a semiconductor power house by fostering the system semiconductor sector rather than focusing only on memory semiconductors.

With a vision to build the world's best semiconductor supply chain, the Korean government strengthened tax support for investment in semiconductor facilities (15-25%) and R&D (30-50%), and it is also actively improving labor and environmental regulations to facilitate semiconductor investment. The government plans to further support the establishment of infrastructure (i.e., water supply and power systems) in the semiconductor complexes in Pyeongtaek and Yongin where new and additional construction of large-scale semiconductor manufacturing facilities are ongoing.

Through regulatory reforms and financial support, the government plans to train and supply 150,000 professionals for the semiconductor industry by 2030. It will also support the R&D partnership between companies by creating clusters specializing in each area of semiconductor technology.