Samsung Electronics turns eager in initiative to localize chip supply chain

2020.06.25 14:03:30

[Photo provided by Samsung Electronics Co.]이미지 확대

[Photo provided by Samsung Electronics Co.]

South Korea’s Samsung Electronics Co. has embarked on the initiative to groom self-supplying chip habitat in Korea to ensure chip leadership amid heavy chasing from China.

Under the so-called “K-chip” vision, Samsung Electronics will strengthen support to small- and mid-size suppliers and enhance competitiveness of the country’s overall chip industry by forging industry-academia partnership and carrying out shared growth activities. The company’s focus is on enhancing overall ecosystem of Korea’s chip sector.

The latest move is in line with recent efforts to localize supply chain under a new semiconductor vision proclaimed by vice chairman Jay Y. Lee in April, last year. The de facto head of Samsung Group has also been underscoring shared growth with suppliers.

Samsung Electronics plans to promote joint development of chip production-related facilities from next month to phase out of reliance on imports.

In April, Samsung Electronics signed a memorandum of understanding with major local facility suppliers and second-tier and third-tier component suppliers including Wonik IPS, Tes, Eugene Technology, and PSK.

Samsung Electronics will promote joint development of components that are deemed necessary by facility operators and component manufacturers. The tech giant will support evaluation on development and mass production of facility components and also share knowhow on chip manufacturing and quality with small- and mid-size partners.

Samsung Electronics will also consult 24 suppliers on 9 areas – development, manufacturing, quality, environment safety, human resources, planning and management, sales and marketing, information protection, and purchase.

[Photo provided by Samsung Electronics Co.]이미지 확대

[Photo provided by Samsung Electronics Co.]

Samsung Electronics has also been offering fabless policy support to create system semiconductor ecosystem.

From October, last year, it has been managing a system semiconductor shared growth fund worth 100 billion won jointly with the government and chip industry. The fund is expected to invest in and nurture Korean potential fabless and design houses.

Samsung Electronics said it has been promoting shared growth in the environment sector by installing a 1,500 kilowatt solar power panel at its parking tower in Giheung Campus. The green power facility will supply energy to some of the office spaces starting next month.

Samsung Electronics initiative took form after Japan’s export curbs on semiconductor materials nearly one year ago.

By Pulse

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