The Korean government has formed a partnership with major Korean semiconductor giants, such as Samsung Electronics and SK hynix, to focus on the development of advanced packaging technology for semiconductors. The Ministry of Trade, Industry and Energy (MOTIE) recently announced an agreement with semiconductor companies and organizations to collaborate on this initiative.

Officials from the MOTIE and semiconductor companies and organizations pose for a photo after signing an agreement on cooperation for semiconductor advanced packaging technology development at Eltower in downtown Seoul on Aug. 29.

While Korea leads the global market in memory semiconductor manufacturing, it has fallen behind the United States and Taiwan in the system semiconductor sector. To address this gap, the Korean government aims to establish an ecosystem by promoting the growth of specialized companies in the fabless, packaging, foundry, and outsourced semiconductor assembly and test (OSAT) sectors.

Korea excels in the foundry sector due to its strong semiconductor manufacturing capabilities, but it still seeks to strengthen its support for Korean companies in the other sectors. The government plans to implement supportive policies to facilitate the development of these sectors.

Semiconductor packaging involves bundling circuits designed by fabless companies for various applications. As the miniaturization of semiconductor processes reaches its limits in terms of packing more technologies into the same-sized area, advanced packaging technology becomes crucial for system semiconductor makers. It enables the creation of multifunctional and highly integrated semiconductors with low power consumption and high performance, enhancing the competitive edge of these companies.

The MOTIE, along with system semiconductor companies and organizations, participated in a ceremony focused on developing and enhancing capabilities in the packaging sector. Signatories to the agreement included the MOTIE, Samsung Electronics, SK hynix, LG Chem, Hana Micron, Protec, Sapeon Korea, Symtec, the Next-Generation Intelligent Semiconductor Business Group, the Korea Semiconductor Industry Association, and the Korea Evaluation Institute of Industrial Technology.

In line with the agreement, the MOTIE plans to promote new research and development projects related to advanced packaging. This will require substantial investment from the government. Additionally, the MOTIE intends to establish a collaboration system with semiconductor research centers in the United States and the European Union (EU), as well as global OSAT companies, to facilitate knowledge sharing and technological advancements.