Although domestic fabless companies account for only 1% of global sales, future growth is expected as efforts to foster excellent semiconductor talent and foster a semiconductor ecosystem are becoming more active.

On the 3rd, the 2022 1st System Semiconductor Symbiosis Forum, hosted by the Seoul National University System Semiconductor Industry Promotion Center, was held simultaneously in person at the Faculty Hall Convention Hall and online.

The Symbiosis Forum, which was launched to identify problems hindering the innovative growth of domestic fabless companies and propose solutions, held a forum under the theme of "K-Semiconductors, Spreading the Wings of Overseas Expansion" to listen to the grievances of domestic fabless companies regarding overseas expansion and gather related experts to discuss them.

At the event, Eunse Lee, CEO of 541 Ventures, and John Chung, CEO of JC&Company, participated as speakers and offered suggestions on overseas expansion plans for domestic fabless companies and answered questions from companies.


CEO Lee Eun-se emphasized, "There's no such thing as too early to contact a US venture capital firm." He noted, "The pace of fundraising has accelerated dramatically, not only in the US but also in Korea. The longer you wait, the greater the chance your competitors will be able to secure funding." He urged Korean venture companies entering the US market to have a long-term vision, stating, "US VCs value lead investors, and there's competition among investors to secure leads. Startups entering the US market need to focus on finding good lead investors."

On this day, CEO John Chung explained US incorporation for companies that need to reposition themselves in preparation for entering the US market. He highlighted the advantages of US incorporation, stating, "Founders and early-stage investors are exempt from capital gains tax on up to $10 million." He also suggested, "Furthermore, it's helpful to utilize the 83b election to receive a lower tax rate on future stock sales or exits."

In addition, he introduced the R&D Tax Credit and SBIR (Small Business Innovation Research) as benefits that startups can enjoy, and also mentioned that startup companies can attract US VC investment by making the US corporation their headquarters and changing the Korean corporation into a subsidiary through a “flip” when entering the US market.

Professor Choi Ki-chang gave a presentation on behalf of Kim Seung-mo, director of the Osceola County Korean Office, who was unable to attend the event. According to the explanation, Osceola County, Florida, USA, is promoting the construction of a smart city and has announced plans to establish a semiconductor production complex, and is sending a love call to Korean semiconductor companies. The project, which has entered Phase 2, is expected to produce a large number of AI talents, as it recently invested $70 million in Florida State University, including from the founder of NVIDIA. This will increase the likelihood that domestic fabless companies will be able to grow through attracting top talent and attracting investment from well-funded venture capital firms, highlighting the excellent location.

During the panel discussion, Semifive CEO Jo Myung-hyun and Furiosa AI CEO Baek Jun-ho participated and discussed US expansion and talent acquisition. A variety of questions were asked, ranging from the importance of selecting a trustworthy partner for global expansion to strategies for mitigating the associated trial and error costs. Each representative provided answers based on their respective global expansion experiences.





CEO Baek said, “Securing product quality is an important factor in global expansion.” He stated that there is no right answer for whether to enter the US initially or to establish a base in Korea before entering the market. He expressed his opinion that, “Once the goal of global expansion becomes clear, we need to organize and prepare the product, team level, and business capabilities of the company according to that level.”

CEO Lee Eun-se stated, "With the recent improvement in accessibility to the US market, some may question the necessity of a US presence. However, securing top talent is key to the company's growth." He added, "While there are many talented engineers in Korea, utilizing stock options to recruit overseas talent for global expansion can be challenging from a business perspective." He explained that the domestic stock option system may feel unfamiliar, and related tax issues could diminish its appeal.

CEO Baek partially refuted the claim, saying, “We have many Korean employees locally, so we accepted Korean stock options,” but added, “It may be difficult to explain the legal aspects and the merits of Korean stock options.”

CEO Jo Myeong-hyeon also mentioned that he had experience granting stock options to local employees in the U.S., and explained, “There are concerns that the attractiveness of Korean stock options will decrease due to additional regulations, but this can be compensated for with other benefits.”

He dismissed the idea, saying he wouldn't consider a U.S. corporation or a flip, even if he were to return to the initial stages of the business. CEO Cho expressed a strong business vision, saying, "SemiFive's value creation lies in Korea, and we will maintain our headquarters there and gradually expand overseas." However, he confessed that although the question of “who would lead the US corporation” was something he had in mind from the outset, it ended up being difficult to find a partner.

Comparing the differences between the business ecosystems of Korea and the US, CEO Lee Eun-se stated, "In the US, even with just Series A funding, you can poach talent from renowned companies, but that's not the case in Korea." He added that even with investment, it's difficult to attract promising external talent. He recommended, "Bringing in talent with global sales experience."





Meanwhile, Center Director Lee Hyuk-jae said, “Many startup founders have engineering backgrounds, so networking with partners with business experience and trustworthy American VCs is important,” adding, “Seoul National University’s System Semiconductor Industry Promotion Center will strive to provide practical assistance not only in recruiting personnel but also in establishing related networks.”