This article takes a look at South Korea’s ambitious government-led plan to localize power semiconductors, especially silicon carbide (SiC) and gallium nitride (GaN) devices. The state’s putting up KRW500 billion, and private players might kick in another KRW250 billion, so we’re talking about a potential KRW750 billion push.
Seoul’s trying to cut its heavy reliance on imports and speed up a domestication program that covers everything: materials, devices, modules, and system verification.
A bold, state-backed push to localize power semiconductors
The plan focuses on ramping up domestic production of SiC and GaN devices. These outperform silicon in tough environments—think high temperatures, voltages, and frequencies.
The government’s targeting an 8-inch wafer ecosystem, moving away from the usual 6-inch base. That’s meant to shore up key sectors like defense, electric vehicles, and power grids.
Right now, South Korea imports about 90–95% of its power semiconductors. The initiative’s aiming to close that gap by building up local capabilities.
Roadmap at a glance
Some milestones: demand-side surveys kick off next month. Infrastructure prep’s slated for 2026.
Mass production of 1.2kV-class SiC MOSFETs is on the books for 2027. By 2030, the government wants to double technology self-sufficiency and boost the share of domestic production.
Officials picture an 8-inch public fab and faster tech transfer to private foundries. The idea is to increase output and bring down unit costs.
- Infrastructure groundwork in 2026 for a bigger 8-inch wafer ecosystem.
- 1.2kV-class SiC MOSFETs mass production set for 2027, which is key for EVs and grid work.
- Long-term aim: double self-sufficiency and domestic production share by 2030.
From supplier-led R&D to demand-led consortia
The program’s moving away from the old supplier-driven model. Now, it’s all about demand-side companies leading the way.
They’re building consortia that pull together materials, devices, modules, and system-level verification. That should speed up commercialization and keep things market-focused.
Anchor firms will guide these consortia, handling full-cycle development and locking in both commercialization and purchasing.
Industrial leadership and consortium dynamics
Some big names are in the mix as anchors—Samsung Electronics, Hyundai Mobis, and Korea Electric Power Corp. (KEPCO) among them. These groups would steer the consortia, keeping research in line with real-world needs and helping bridge the last-mile gap to mass-market use.
The model’s designed to tighten feedback between labs and end users. That helps get tech into private foundries faster and brings costs down as production scales up.
Public-private investment and regional drive
Regional projects are already getting underway. In Busan, authorities have earmarked KRW20 billion for an 8-inch full-process platform and a dedicated SiC substrate analysis base for quality control and defect checks.
These regional platforms are supposed to anchor national capabilities, creating a more robust, traceable supply chain. They’ll also help set up a standardized testing system that should speed up commercialization across the country.
Why this matters now: a race against global competition
Officials warn that Korea is falling behind mature international competitors. At the same time, China’s making rapid advances.
Korea needs a successful, government-led ecosystem revitalization to keep its strategic autonomy in power electronics. This is also crucial if the country wants to keep up in fast-growing sectors like EVs, smart grids, and defense tech.
The shift toward 8-inch wafers and domestic fabs isn’t just technical—it’s a clear move to close the gap with global leaders. By doing this, Korea hopes to cut its exposure to unpredictable global supply chains.
Implications for industry players include more intense collaboration across sectors. We’ll probably see new funding and risk-sharing setups, plus a faster push for commercialization.
Companies, big and small, will need to align with consortia demands. They’ll have to invest in 8-inch capabilities and jump through some serious verification hoops to prove that Korea’s supply chain can handle both civilian and defense-grade needs.
Here is the source article for this story: South Korea’s US$344.3 million push to localize power chips