South Korea Plans $120 Bn Worth Chip Export As India Decides To Be Part Of Global Semiconductor Map

Industry sources confirmed that about $26 billion worth of investment proposals are currently with the Indian government for semiconductor manufacturing in the country

South Korea's chip exports have been exhibiting signs of recovery, surging by 66.7 per cent year-on-year to $9.94 billion in February.

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South Korea aims to actively shore up the semiconductor industry and expedite the advancement of high-bandwidth memory and artificial intelligence chips to reach the annual export goal of $120 billion, said Industry Minister Ahn Duk-geun on Thursday. "The government will support the timely establishment of related infrastructure, secure competitive technologies, promote exports, and strengthen the ecosystem of materials, parts, equipment, and fabless sectors," Ahn said, IANS cites the report of Yonhap news agency.

The move comes at a time when India has embarked on an ambitious semiconductor journey, with massive investments pouring in. About $26 billion worth of investment proposals are currently with the Indian government for semiconductor manufacturing in the country, according to industry sources.

Investment Proposals Under Consideration 

As per industry, this initiative arises amidst India's ambitious foray into the semiconductor realm, with substantial investments pouring in. Industry sources reveal that investment proposals worth about $26 billion are currently under consideration by the Indian government for semiconductor manufacturing in the country.

The government has already cleared proposals worth over $18 billion encompassing three new semiconductor fabrication (fab) manufacturing projects worth Rs 1.25 lakh crore.

Meanwhile, SK hynix is in the process of planning the construction of four units of fabrication plants at the site, with a budget of 120 trillion won ($89.5 billion) by 2046, commencing with the groundbreaking of the first unit slated for the first quarter of 2025.

The company proposed to manufacture DRAM and NAND flash memory chips in mass, establishing it as the flagship production hub.

During his visit, Ahn outlined the government's intention to formulate a comprehensive strategy for South Korean businesses to lead in the artificial intelligence sector.

In alignment with these objectives, the ministry intends to come up with a new department dedicated to supporting the development of the masses, along with comprehensive support measures to introduce within this month. Ahn further announced plans to devise strategies to enhance the competitive edge of chip equipment within the first half of the year.

South Korea's chip exports have been exhibiting signs of recovery, surging by 66.7 per cent year-on-year to $9.94 billion in February. This marks the fourth consecutive month of growth and the most significant increase since the 69.6 per cent rise recorded in October 2017.