Korean Government Focusing on Nurturing Global Star Fabless with 20 Companies Selected

The government has identified and selected 20 domestic Fabless companies for nurturing as global star fabless enterprises.

The Ministry of Trade, Industry, and Energy (referred to as the Ministry) is organizing the launch ceremony for Global Star Fabless on the 28th at the Gyeonggi Center for Creative Economy & Innovation. During this event, representatives from the 20 companies selected as Global Star Fabless will join the Ministry and the semiconductor industry to announce their participation in a project aimed at fostering top-tier global fabless entities.

Through a public announcement and expert evaluations, the Ministry selected a total of 20 companies for participation in this project: 10 Global Star Fabless companies (Abov Semiconductor, 3A-Logic, Point Technologies, HighDeep, AD Tek, Chips & Media, Jeju Semiconductor, Padu, Dongwoon Anatech, PixelPlus), and 10 Rising Star Fabless companies (Mobilint, SuperGate, Sapien Semiconductor, OpenEdge Technology, Qualitas Semiconductor, IM Coretech, TechWithU, PowerLSI, SolidVue, HachiTech).

The semiconductor design field, along with foundries, constitutes the two major axes of the system semiconductor market. It requires high-level technological capabilities and know-how, making entry barriers high. Currently, the top 30 global companies command around 90% of the global market share (as of 2022). In contrast, the domestic Fabless market share is a modest 1%.

The Global Star Fabless project is a long-term initiative aimed at elevating South Korean Fabless enterprises into the global top tier. The government plans to apply preferential criteria for various semiconductor support policies such as technology development support, MPW (Multi-Project Wafer) prototyping, financial support, domestic and international marketing, and design personnel nurturing to actively support the growth of Star Fabless companies.

Previously, the government has supported the growth of initial companies by providing essential tools like Electronic Design Automation (EDA) and office spaces. Additionally, it has supported the crucial prototyping (MPW, etc.) necessary for Fabless companies' free access to foundries. Furthermore, to promote growth and self-reliance among Fabless entities, the government launched the 'Semiconductor Ecosystem Fund' last June, providing support amounting to 300 billion KRW. Efforts are also underway to strengthen ties with foundries through the 'System Semiconductor Cluster.'

During the event, apart from the Global Star Fabless launch, four separate consortium companies currently engaged in demand-linked system semiconductor technology development also participated. They signed memorandums of understanding (MOUs) for cooperative tasks between supply companies and demand companies. The plan for consortium supply companies is to engage in technology development over the next three years to commercialize semiconductor products that meet the technical levels specified by the consortium's demand companies. Participation from demand companies in technology development is expected to minimize trial and error and increase the potential for commercialization.

Director Ju Young-joon stated, "With the advent of future industries such as AI and electrification and the rapid growth of the global system semiconductor market, the importance of Fabless is increasing." He further added, "We will provide various government support measures to promising Fabless entities to nurture top-tier global Fabless companies. Simultaneously, we will create opportunities for new product development for Fabless companies by supporting demand-linked technology development, fostering advanced industries."

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