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The large image: South Korean tech giants like Samsung and SK Hynix have dominated reminiscence manufacturing for many years. Nonetheless, the nation’s president thinks the competitors within the processor market, the place Taiwan’s TSMC looms giant, has not too long ago turn out to be considerably extra crucial. A brand new assist package deal goals to extend Korea’s competitiveness throughout the chip trade.
South Korean President Yoon Suk Yeol not too long ago unveiled a $19 billion assist program to spice up the nation’s semiconductor trade. One of many areas the President pressured when outlining the package deal considerations processors, a sector the place Korean firms at present lag behind trade chief TSMC.
President Yoon acknowledged that South Korea has dominated reminiscence manufacturing for 30 years but additionally famous that “all-out nationwide warfare” has emerged to supply semiconductors for CPUs and GPUs. International locations just like the US and China have intensified their concentrate on semiconductors because the pandemic revealed the fragility of tech provide chains. The AI growth has additionally made CPUs and GPUs extra essential. Current earthquakes in Taiwan, the place TSMC makes probably the most superior chips, have additionally raised considerations.
Though the Korean monetary package deal would not embody direct subsidies just like the latest US CHPS Act, it is going to provide tax credit and assist for infrastructure and R&D. To deal with considerations that the assist will primarily profit giant firms, Yoon acknowledged that 70 % of affected companies will likely be small or medium-sized.
For instance, this system will assist the institution of a mini-fab to assist fabless firms design and prototype chips. Yoon famous that Korea’s fabless market share at present hovers round one % and has struggled to shut the hole with TSMC.
Finance Minister and Deputy Prime Minister Choi Sang-mok addressed the priority surrounding the shortage of direct subsidies by highlighting the variations between how numerous international locations assist their chip industries. With out straight mentioning the American CHIPS Act, Choi mentioned direct subsidies are higher suited to international locations attempting to construct manufacturing capability from scratch. This necessity is mitigated in South Korea and Taiwan since they already possess sturdy services.
In associated information, Samsung has denied a latest Reuters report suggesting that its new HBM3 reminiscence chips failed checks for Nvidia’s upcoming AI GPUs attributable to extreme warmth and energy consumption. Reuters cited a number of sources, however Nvidia hasn’t publicly commented on the declare. Samsung’s Korean rival, HK Hynix, plans to launch HBME3 reminiscence this yr and progress to HBM4 in 2026.
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