South Korea to consider setting up $3.1 billion foundry to grow local chip sector

South Korea is considering building a 4.5 trillion won ($3.06 billion) foundry to manufacture chips, funded by state and private investment, the industry ministry said, amid efforts to ensure the country remains a powerhouse in semiconductors.

President Lee Jae Myung presided over a meeting on Wednesday attended by executives from chipmakers, including Samsung Electronics and SK Hynix, as well as policymakers and experts to lay out plans to maintain the country’s lead in memory chips, strengthen the foundry business and expand fabless chip design in the AI era.