According to The Korea Biz Wire, the initiative, proposed by industry experts and academics, aims to enhance the country's semiconductor capabilities and address existing structural weaknesses.

Ahn Ki-hyun of the Semiconductor Industry Association has called for substantial, long-term government investment in this venture. Experts estimate that an investment of KRW 20 trillion ($13.9 billion) in KSMC could generate economic gains of KRW 300 trillion ($208.7 billion) by 2045.

 However, there are concerns about whether the proposed $13.9 billion is sufficient to establish a competitive chipmaker. Additionally, questions arise about the capability of publicly funded entities like KSMC to develop cutting-edge manufacturing technologies and secure enough client orders to remain profitable. It is also noted that South Korea needs more fabless software developers alongside semiconductor manufacturers.

The proposal was unveiled during a seminar hosted by the National Academy of Engineering of Korea (NAEK). The plan seeks to mitigate the country's heavy reliance on Samsung's advanced nodes below 10nm and the lack of mature process technologies.

Currently, smaller system semiconductor firms face challenges due to the absence of manufacturing diversity, in contrast to Taiwan, where companies like UMC and PSMC support TSMC's advanced processes with mature and specialty nodes.