Opportunities in the world’s 2nd largest semiconductor market

South Korea has the world’s 2nd largest global semiconductor market with a strong presence in the memory chip, spending 5% of its GDP on the R&D sector. Memory chip segment has been dominated by South Korean companies, boasting 60% of the global market, whereas South Korea only holds less than 3% of market share in the system chip industry.
The South Korean government has initiated strategies to enhance its competitiveness of system chips by tax incentives, investments, and subsidies.
With the K-Chip Act, chipmakers are offered incentives for establishing new factories and companies receive increased tax credit which applies globally.
The government unveiled the plans for a 472 billion USD ‘Mega Semiconductor Cluster’ in Gyeonggi Province. The Cluster will be completed by 2042, focusing on logic semiconductor production. By 2047, Yong-In mega cluster and southern Gyeonggi Province will have 16 new plants, bringing the total to 37.
RISE Research Institute of Sweden signed a cooperation agreement with KEIT, KETI, KATECH, and KOMERI in September 2023 to intent to cooperate in various areas, here primarily in the maritime area as well as battery and power semiconductor research.

Establish as suppliers to the chip cluster, provide support in constructing necessary infrastructure, rent/sales of equipment, etc. In order to reach carbon neutrality by 2050, sustainable solutions and factories would be needed, and could provide opportunities for Swedish companies.
Korean semiconductor has competitiveness in memory chips and IDMs while Swedish competence lies in the power semiconductor and IC design based on the long legacy in the electronics – complementary to each other.
Promotion to Korean companies and research institutes to utilize Swedish testbeds and R&D institutions and increase investment to Swedish companies.
Delegation program to Sweden and to South Korea are planned for 2025 to enhance bilateral collaboration on the semiconductor.

For more information contact Josie Ryu at josie.ryu@business-sweden.se.