China's semiconductor boom, U.S. President Biden holding semiconductor wafers, and TSMC, which holds the world's largest foundry market share, have three things in common. It falls within the category of the government's full-scale support for fostering the semiconductor industry.

■ Full support needed for Korean semiconductors

As major countries around the world are staking their lives on fostering the semiconductor industry, which is directly linked to economic security, the incoming Yoon Seok-yeol administration's strong commitment to fostering the semiconductor industry is evident.

A comprehensive look at the semiconductor policy direction of President-elect Yoon Seok-yeol's 20th Presidential Transition Committee includes strengthening the infrastructure and talent development necessary for research and development, along with private-sector-led and government-cooperative support. To this end, it is expected that a larger budget will be invested to support the semiconductor industry than the level supported by the current government.

The current government's support for semiconductors is relatively low compared to major countries with global semiconductor companies, with 1 trillion won for intelligent semiconductor R&D projects, 400 billion won for the launch of new-concept semiconductor PIM projects, and 1 trillion won for special funds for semiconductor equipment investment.

Meanwhile, the United States passed the American Innovation and Competition Act last year, dedicating $52 billion (approximately 65 trillion won) to expanding U.S. semiconductor manufacturing capacity. $2 billion (approximately 2.5 trillion won) is earmarked for the development of automotive semiconductors alone.

Furthermore, China has been pouring 1 trillion yuan (approximately 192 trillion won) into its semiconductor industry since 2015, fueled by its semiconductor boom. The European Union (EU) plans to invest 145 billion euros (approximately 193 trillion won) with the goal of increasing its share of global semiconductor production to 20% by 2030.

Accordingly, the next administration's strong commitment to fostering the semiconductor industry is a positive development. President-elect Yoon's transition team's semiconductor policy, designed to strengthen semiconductor technological competitiveness, prioritizes the following: Establishing a platform for industry-academia-research collaboration in semiconductor R&D; Strengthening the functions of public semiconductor fabs; Designating and fostering key national semiconductor research labs; and Developing semiconductor talent.

In an e4ds interview, a member of President-elect Yoon's transition team stated, "The semiconductor industry has changed from a competition between companies in the past to a joint competition between the government and companies," and "We will pursue full-scale deregulation and investment incentives to expand the domestic production base for semiconductors, which are strategic security assets." He added, "To maximize Korea's position in the US-led supply chain restructuring, we will strengthen next-generation technology development and supply chain cooperation with the US and other major global semiconductor countries."

In particular, he emphasized that “the biggest difference from the current government is that we are strengthening investment support for fostering the semiconductor industry.”

As the transition committee reviews various proposals for fostering the semiconductor industry, including raising the semiconductor tax deduction rate, expediting licensing, and reforming related regulations, attention is focused on whether the necessary policy plans for the industry will be established. Yoon's transition team focuses on nurturing semiconductor talent.

The current administration is being criticized for essentially neglecting the private sector in fostering talent. With the expansion of semiconductor talent development stalled, even large corporations, let alone small and medium-sized enterprises, are struggling with a semiconductor talent shortage.

In a survey of semiconductor companies conducted by the Korea Semiconductor Industry Association, 65.4% responded that the most important aspect of government support for the semiconductor industry was ‘talent supply and demand.’ SK Hynix, Samsung Electronics, and other companies are establishing semiconductor contract departments at major universities in the metropolitan area, leading the private sector to make efforts to secure semiconductor talent.

Last year, the government unveiled a mid- to long-term blueprint for nurturing semiconductor talent, aiming to cultivate 36,000 individuals over ten years. However, the Special Act on Semiconductors failed to meet industry expectations, as it did not include measures such as increasing the number of semiconductor departments in universities in the Seoul metropolitan area or government support for on-the-job training by companies. This has led to complaints that local lawmakers and relevant authorities have failed to adequately address the demand for semiconductor talent development, simply by asserting their respective positions.

The four major policies announced by the 20th transition committee primarily focused on nurturing semiconductor talent and supporting R&D infrastructure. The transition committee is expected to meticulously focus on not only nurturing a large number of semiconductor talent but also securing talent for fabless companies and other small and medium-sized semiconductor companies.

In an e4ds interview, a transition team official promised, “The semiconductor contract department is a way to support and recruit large corporations, and the next government will support it so that not only large corporations but also small and medium-sized enterprises can utilize the contract department.”

The transition team official mentioned that Taiwan has already been strengthening national support by establishing four semiconductor graduate schools last year, and that the United States is investing in Ohio University, where Intel's factory will be located, and is also developing human resources through matching with the federal government.

He added, "The next administration aims to establish a system in which businesses and the government jointly develop the talent needed in the field. We affirm the government's proactive and facilitative role in human resource development, which is key to the competitiveness of the semiconductor industry." To this end, the government announced plans to “promote a balanced approach to talent development through △expanding undergraduate enrollment, △designating a semiconductor graduate school, △establishing major tracks, △cultivating human resources through public-private joint investment R&D, △activating in-house universities, and △cultivating human resources through public-private collaboration.”

Meanwhile, the industry recognizes that while the talent shortage is a mid- to long-term challenge, it also hopes for a flexible implementation of the 52-hour workweek in R&D to address short-term issues. Industry expectations are running high, as President-elect Yoon has demonstrated a positive stance toward expanding work hour flexibility since his candidacy.