South Korea Boosts Semiconductor Industry with ‘Cluster’ Formation

An Deok-geun, Minister of Industry, Puts Efforts into Strengthening South Korea’s Semiconductor Industry Competitiveness with the Formation of a ‘Semiconductor Cluster’

An Deok-geun, the Minister of Industry, is actively working towards enhancing the competitiveness of South Korea’s semiconductor industry by focusing on the establishment of a ‘semiconductor cluster.’

Minister An Deok-geun Urges for the Swift Formation of a Semiconductor Cluster

During his second site visit as the Minister of Industry, An Deok-geun visited the SK Hynix semiconductor factory. The Ministry of Trade, Industry, and Energy (hereinafter referred to as the Ministry of Industry) plans to strengthen policy support such as the formation of a semiconductor cluster, under the judgment that this year’s recovery of South Korea’s exports depends on the semiconductor industry.

Emphasis on the Formation of a Semiconductor Cluster and Strengthening Industrial Competitiveness

During a meeting held on January 11th at the SK Hynix Icheon factory, Minister An stated, “To maintain the leadership of the semiconductor industry and strengthen industrial competitiveness, we will focus on the swift establishment of a semiconductor cluster, fostering skilled professionals, and enhancing industrial competitiveness. We will ensure that the growth of the semiconductor industry continues, leading to the expansion of exports and the revitalization of the domestic economy.”

The Importance of the Semiconductor Industry for South Korea’s Economic Growth

Minister An emphasized the significance of the semiconductor industry, stating, “In 2022, semiconductor exports reached a record high of $129.2 billion, contributing to the overall export performance of $683.6 billion.” He further projected, “This year, with the recovery of the IT industry and the increase in memory semiconductor prices, the growth of the semiconductor industry will continue to drive the overall increase in exports.”

Future Outlook and Focus on AI Demand

Deputy Minister An expressed his expectation that despite challenging conditions such as global economic downturn and semiconductor market downturn, semiconductor exports have turned positive, laying a solid foundation for South Korea’s export growth. He also emphasized the need for bold preemptive investments centered around Pyeongtaek and Yongin in Gyeonggi Province to maintain leadership in the semiconductor industry and actively respond to the demand for artificial intelligence (AI).

Government Plans to Support Export Expansion and Supply Chain Stability

The Ministry of Industry plans to support export expansion through a trade finance worth 355 trillion won and export marketing support of approximately 1 trillion won. Additionally, it will promote market diversification through the expansion of trade networks and supply chain expansion through the cultivation of key export industries. Furthermore, it will promptly address the difficulties faced by export companies and establish timely support measures through export support teams and public-private joint conferences.

Satya Nadella, CEO of Microsoft, Visits South Korean Startups at CES 2024

Satya Nadella, the CEO of Microsoft, surprised the industry by visiting South Korean startup booths at CES 2024. The expectation for Microsoft’s investment and collaboration with domestic startups is growing.

Interest in Gaudiolab’s Sound Generation AI

During his visit to CES on January 10th, Satya Nadella showed interest in Gaudiolab’s sound generation AI, ‘Paul-E.’ This AI model automatically generates all sounds corresponding to the displayed content. Gaudiolab’s technology separates and classifies sounds, playing a role in generating training data for sound creation from white noise.

Exploring Mobin’s Last-Mile Delivery Robot

Nadella also visited the booth of Mobin, a wheeled last-mile delivery robot startup. Mobin explained how their robots overcome physical obstacles, achieve cost-effectiveness, and have the potential for various services. When inquired about the current status of Mobin’s business, Nadella received a response stating that they are currently providing services in resort apartment complexes and have the potential for expansion beyond robot delivery.

Potential Collaboration between Microsoft and South Korean Startups

With Nadella’s visit to South Korean startup booths and his interest in their technologies, speculation about future collaboration between Microsoft and South Korean startups is emerging. Microsoft is an initial investor in OpenAI, the developer of GPT chatbot. Microsoft’s total investment of $13 billion gives them a 49% stake in OpenAI, raising high expectations for potential partnerships. It is not yet clear whether Nadella’s visit is for the purpose of collaboration or simply observing the startup scene.

Sources: 한국경제