WHAT
- South Korea is the world’s 2nd largest semiconductor market, holding approximately 19% of global production, with a commanding ~60% share in the memory segment (~70% DRAM, ~53% NAND).
- The system chip (logic) segment, while currently below 3%, is being strategically targeted through government support, such as tax incentives, investment subsidies, and the K-Chips Act, to boost competitiveness.
- South Korea plans to build a ‘Mega Semiconductor Cluster’ in Southern Gyeonggi Province, with USD 472 billion in investment by 2047, adding 16 new fabs, bringing the total to 37.
- Accelerating demand for AI infrastructure has driven sharp price increases in DRAM and HBM, fueling export and production growth. Samsung and SK Hynix are aggressively investing in R&D and capacity expansion.
HOW
- Supply Chain Participation: Swedish companies can leverage their technological strengths and sustainability credentials in infrastructure development, equipment leasing/ sales, and provision of eco-friendly solutions within the semiconductor cluster.
- R&D and Testbed Collaboration: Swedish firms can collaborate with Korean companies and research institutes, utilizing Swedish testbeds and R&D infrastructure. Knowledge Sharing Program, a bilateral program to strengthen collaboration in semiconductors, scheduled for 2026, is expected to further expand these opportunities.
- Power Semiconductor sector: Sweden’s long history and expertise built over 30 years in the power semiconductor technologies are highly complementary to Korea’s strengths in memory and IDM, especially as demand for power semiconductors surges in APAC for EVs, renewables, and industrial automation.
CONTACT US
For more information contact Josie Ryu at josie.ryu@business-sweden.se.