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The Status of Korean Fabless Firms and Their Cooperation with Set Makers

Author

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  • Shin, Jongwon

    (Korea Institute for Industrial Economics and Trade)

Abstract

In 2019, the Moon Jae-in administration promulgated its System Semiconductor Vision as a new growth engine for the sustainable growth of Korea. To achieve this goal, fabless SMEs and a competitive semiconductor ecosystem are regarded as key elements in fostering the system semiconductor industry in Korea, and new policy directions and alternative policy measures need to be addressed. The Korean government’s vision for making Korea a semiconductor powerhouse by 2030 is aimed at achieving the largest market share in foundry services and securing 10 percent market share in the fabless sector while maintaining Korea’s leadership position in the memory semiconductor market. Unfortunately, in the extant literature, there is a dearth of discussion on fabless SMEs in Korea owing to a lack of accurate data. This paper discusses the current status of Korean fabless SMEs and their cooperation with set makers using unique survey data collected from 81 fabless firms.

Suggested Citation

  • Shin, Jongwon, 2022. "The Status of Korean Fabless Firms and Their Cooperation with Set Makers," Industrial Economic Review 22-7, Korea Institute for Industrial Economics and Trade.
    • Handle: RePEc:ris:kieter:2022_007
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    More about this item

    Keywords

    fabless; fabless industry; fabless semicondcutors; semiconductors; chipmaking; foundry; SMEs; small and medium-sized enterprises; system semiconductors; memory semiconductors; semiconductor industry; Korea; R&D;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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