South Korea Invests 4.5 Trillion Won to Build 40nm Wafer Fab, Implementing Multiple Measures to Support Fabless Enterprises

On February 11, 2026, the South Korean Ministry of Trade, Industry and Energy held a "Seminar on Growth Strategies for Core AI Semiconductor Enterprises," where a series of support plans for the domestic semiconductor industry were announced. Representatives from several NPU chip companies and experts from various fields attended.

Addressing the long-standing foundry capacity bottleneck faced by South Korean fabless companies, the South Korean government has decided to invest 4.5 trillion won (approximately 21.6 billion yuan) to build a new 12-inch 40nm wafer fab, specifically to support the R&D and commercialization of domestic fabless companies.

In terms of foundry services, the government will focus on Samsung Foundry, promoting diversified cooperation models such as IP sharing and multi-project wafer (MPW) services to lower the R&D barriers for fabless companies. By opening up process platforms and design resources, the government aims to accelerate the conversion efficiency from design to tape-out.

In addition to wafer fab construction, South Korea's Ministry of Trade, Industry and Energy has planned several supporting measures: investing 1 trillion won (approximately 4.8 billion yuan) over the next five years to collaborate with companies to promote the "MediaTek Development and Commercialization Project for AI Semiconductors in South Korea"; establishing a 2 trillion won (approximately 9.6 billion yuan) semiconductor special account this year to provide fabless companies with low-interest loans, R&D subsidies, and other financial support; and setting up semiconductor talent training bases outside the Seoul metropolitan area to alleviate the industry's labor shortage. Furthermore, the support will be expanded to mid-range semiconductors outside of AI, aiming to achieve a full range of technological upgrades.