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Memory Semiconductor No. 1 and Integrated Device Manufacturing No. 2 in the World Close
Memory Semiconductor No. 1 and Integrated Device Manufacturing No. 2 in the World

Korea’s market share in the global semiconductor industry in 2019 was 18.4%, and it has maintained the second rank in the world since 2013.
In particular, Korea accounted for 58.4% of the global memory semiconductor market, 71.6% of the DRAM market, and 45.9% of the NAND market.

Korea has world-class memory semiconductor technology and has focused on continuous R&D and investment to uphold its competitive advantage.
In addition, Korea is currently working hard to expand its foundry market share based on the ultra-fine process technology.
Global Semiconductor Market Share (2019) Total semiconductor

Korea 18.4% (USD 78.9 billion)

US 50.6% (USD 216.9 billion)

Japan 10.0%

Europe 9.5%

China 4.7%

etc. 6.8%
Global Memory Semiconductor Market Share (2019) Memory

Korea 58.4% (USD 65.7 billion)

US 28.7%

Japan 8.2%

Taiwan 4.0%

China 0.4%

etc. 0.3%
※ Source: OMDIA 2020

Leading the Korean Economy as the Leading Export Item Open

Leading the Korean Economy as the Leading Export Item

In 2019, total semiconductor sales in Korea were USD 78.9 billion, and memory semiconductors accounted for 83.3% at USD 65.7 billion.
Semiconductors are Korea’s leading export item, accounting for 17.3% of total sales in 2019,
and the industry leads the Korean economy and other industries.

"Exports of semiconductors from Korea"

(Unit: USD 100 million)

Exports of semiconductors from Korea Memory semiconductors, system semiconductors, optical and discrete components
Category	2013	2014	2015	2016	2017	2018	2019
Memory semiconductors	255	340	338	352	672	941	630
system semiconductors	250	225	231	205	254	265	250
optical and discrete components	67	61	60	65	54	62	52
Total	571	626	629	622	979	1,267	939

More Global Materials, Parts, and Equipment Companies Enter the Korean Semiconductor Market Open

More Global Materials, Parts, and Equipment Companies Enter the Korean Semiconductor Market

Many global companies in the materials, parts, and equipment industries based on the semiconductor, which is Korea’s key product, are entering the Korean market.

Lam Research, the US-based semiconductor etching and deposition equipment maker, established Lam Research Manufacturing Korea in 2011.
The company has seen continuous growth of output in Korea, and consequently, delivered the 5,000th piece of equipment produced in Korea.
. It also opened the Korea Technology Center, an R&D facility, in September 2019.

GlobalWafers, a silicon wafer manufacturer in Taiwan, establish MEMC Korea and completed its second factory in 2019,
which manufactures twelve-inch silicon wafers.

Other global companies, such as Henkel, DuPont, and ON Semiconductor, have also invested in Korea to enter the Korean semiconductor market.
Develop System Semiconductors and Improve Competitiveness of Materials, Parts, and Equipment Open
Develop System Semiconductors and Improve Competitiveness of Materials, Parts, and Equipment

The Korean government has shown a strong willingness to transform the country into an integrated device manufacturer by going beyond memory semiconductors and developing system semiconductors through the System Semiconductor Development Strategy (April 2019) and the AI Semiconductor Industry Development Strategy (October 2020).

The target is to increase Korea’s global market share in fabless and foundry markets to 10% and 35% respectively by 2030.
To achieve the goal, the government plans to arrange an exclusive fund and offer tax benefits, expanding the government’s support for the field of system semiconductors.

Also, following the Measure to Improve Competitiveness of Materials, Parts, and Equipment *August 2019), cash grants for foreign-invested companies involved in key strategic industries will be expanded up to 40%, and foreign-invested companies entering foreign investment zones can be exempted from paying rent for up to fifty years.
Fast approval and permission on strategic products and social overhead capital, such as roads and electricity, will be preferentially supported.

"Semiconductor Powerhouse Vision 2030"
- Increase market share(단위: %)
  
  Fabless 2018(1.6) > 2030(10) 8.4% 상승
  
  foundry 2018(16) > 2030(35) 19% 상승
- Promotional strategies
  
  Support start-ups and create a fund (approx. USD 90 million)
  
  Financial, tax support, etc.
Semiconductor Cluster Led by Samsung Electronics and SK Hynix Open
Semiconductor Cluster Led by Samsung Electronics and SK Hynix

Korean semiconductor companies are clustered in Gyeonggi area and also located in Chungcheongbuk-do and Chungcheongnam-do.

Samsung Electronics, in addition to its factories in Suwon, Giheung, and Hwaseong, plans to construct factories in Pyeongtaek,
which will have the world’s largest semiconductor manufacturing belt. SK Hynix plans to break ground for a 4.48 million m2 semiconductor cluster in Yongin-si,
Gyeonggi-do in 2021 and start mass producing semiconductors from 2024.

"Semiconductor Clusters in Korea"
- Gyeonggi-do Suwon: Memory
- Gyeonggi-do Pangyo: Fabless, SW companies
- Gyeonggi-do Giheung, Hwaseong : Memory/Foundry
- Gyeonggi-do Yongin: Memory/Materials, parts, equipment
- Gyeonggi-do Pyeongtaek: Memory/Foundry
- Gyeonggi-do Icheon : Memory
- Chungcheongbuk-do Cheongju : Memory/Packaging

Invest KOREA

Semiconductor/Display PM

Cho SeYoung Key Industries Promotion Team

T.+82-2-3460-3239

Recommendation on Locations

BEST1

[Gyeonggi-do Suwon City]

Suwon Deltaplex (Block 3)

Designated area(m2) : 847,409
Management : Gyeonggi-do Suwon City
Nearby Railway : Suwon Station (4km)
Nearby Airport : Gimpo International Airport (49km)

BEST2

[Gyeonggi-do Seongnam City]

Pangyo 2nd Techno Valley[formerly: Pangyo Creative Economy Valley]

Designated area(m2) : 430,402
Management : Gyeonggi-do Seongnam City
Nearby Railway : Oksu Station (19km)
Nearby Airport : Gimpo International Airport (45km)

BEST3

[Gyeonggi-do Hwaseong City]

Hwaseong Songsan Techno Park General Industrial Complex

Designated area(m2) : 528,723
Management : Hwaseong Urban Corporation
Nearby Railway : Suwon Station (34km)
Nearby Airport : Gimpo International Airport (59km)

BEST4

[Gyeonggi-do Gunpo City]

Gunpo High-tech Industrial Complex

Designated area(m2) : 287,619
Management : Gyeonggi-do Gunpo City
Nearby Railway : Suwon Station (10km)
Nearby Airport : Gimpo International Airport (38km)

BEST5

[Chungcheongbuk-do Jeungpyeong County]

Jeungpyeong 2nd General Industrial Complex

Designated area(m2) : 702,807
Management : Chungcheongbuk-do Jeungpyeong County
Nearby Railway : Jeungpyeong Station (6km)
Nearby Airport : Cheongju International Airport (17km)

BEST6

[Gyeonggi-do Pyeongtaek-sity]

LG Digital Park General Industrial Complex

Designated area(m2) : 125,312
Management : Gyeonggi-do Pyeongtaek City
Nearby Railway : Osan Station (22km)
Nearby Airport : Gimpo International Airport (72km)