SEOUL, April 1 (Korea Bizwire) — South Korea pledged Thursday to support the power semiconductor industry amid growing demand for energy-efficient chips with stronger durability.
Under the goal, the country plans to develop at least five power semiconductor products by 2025, according to the Ministry of Trade, Industry and Energy. South Korea also plans to support local businesses to establish the production lines of six- to eight-inch foundry factories.
Power semiconductors are used to convert, stabilize and distribute electricity. They are used in a wide array of products ranging from computers and home appliances to automobiles.
The next-generation power semiconductors are produced with power-efficient wafers utilizing new materials, such as silicon carbide and gallium nitride.
South Korea said the development of energy-efficient power semiconductors is especially crucial as electric cars call for parts with stronger durability against heat and pressure.
“The efficient management of electricity is crucial to vitalize future growth engines, such as artificial intelligence, fifth-generation networks and autonomous driving,” Industry Minister Sung Yun-mo said.
“Next-generation power semiconductors are the key for the vision.”
The ministry said it will also spare no efforts to broaden cooperation between the public and private sectors, and support related research and development projects.
The country will inject 6 billion won (US$5.29 million) through 2022 to build infrastructure to produce prototypes of power chips.
Through such efforts, South Korea vowed to beef up its supply chain of devices, modules and systems.
The size of the local market for power semiconductor products, meanwhile, is estimated at around $2 billion.
South Korea depends on imported products to meet 90 percent of its demand.
The ministry said the size of the global market for power semiconductors is expected to reach $53 billion by 2023, rising sharply from $45 billion tallied in 2019.