Samsung, LG, SK Telecom to develop advanced semiconductors

By Lee Joon-seung
SEOUL, July 27 (Yonhap) -- South Korea's Samsung Electronics Co., LG Electronics
and SK Telecom will work with other local companies to make semiconductors for
hightech digital appliances that can replace imports, the government said Monday.
The plan calls for the first ever tie-up between Samsung and LG to make so-called
global digital TV receiver chips, while SK aims to create a wireless connectivity
system-on-chip (SoC) for smart phones with chip designing company Xronet, the
Ministry of Knowledge Economy said.
The government plans to provide 6.8 billion won (US$5.4 million) for the project
in the next year, while the private sector pledged to inject 6.5 billion won.
Under the pact, LG will work with Samsung's foundry to make chips for its
best-selling digital TVs.
"LG and smaller partner companies will design the chips, with Samsung
manufacturing and testing the finished products," said Park Tae-sung, head of the
ministry's semiconductor industries division.
He claimed that if the tie-up is successful the country could save 300 billion
won in imports and be able to ship out 300 billion worth products overseas three
years after the product is made. Seoul will allocate 4.0 billion won to support
research and development.
It could, in addition, boost fresh business investments by 200 billion won and
lead to the creation of scores of jobs.
For smart phone SoCs, the ministry in charge of the country's industrial policies
said it will provide 2.8 billion won in state funding to help local development.
If a domestic SoCs can be made, it is expected to replace imports of WiFi and GPS
semiconductors that top 800 billion won annually.
yonngong@yna.co.kr
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