'Following Samsung Semiconductor to India' Korean Semiconductor Materials and Equipment Companies Explore Entry into India

[Financial News] While Samsung Electronics recently expanded its semiconductor R&D organization in India, domestic semiconductor materials, parts, and equipment companies have also turned to India to secure R&D personnel. It is interpreted that they are seeking joint entry into the semiconductor R&D field with Samsung Electronics.
■ Domestic Semiconductor Workforce Shortage, Up 21% in 5 Years
According to the semiconductor industry on the 1st, Samsung Electronics opened its second semiconductor R&D center in Bengaluru, India last year, following 2004. It is a building that can accommodate about 1600 people, with a 4-story structure on a 160,000㎡ site. The semiconductor research workforce of Samsung Electronics in India increased fivefold from about 1000 in 2019 to about 5000 this year. The rank of the head of the research lab (SSIR) is vice president, indicating the strengthened status as a core R&D center of Samsung Electronics. Samsung Electronics continues to recruit talent in 17 fields locally.
In this atmosphere, materials, parts, and equipment companies that have direct or indirect cooperative relationships with Samsung Electronics visited India in large numbers on this day. Companies like Dongjin Semichem, EO Technics, Dongwoo Fine-Chem, SSP Co., Uno Silicon, and JT are included. This is the first time domestic semiconductor materials, parts, and equipment companies have visited India in the form of an inspection team. A semiconductor industry official said, "All the companies visiting India this time are highly interested in entering the local market," adding, "In-depth discussions related to local entry will take place." These Korean semiconductor materials, parts, and equipment companies will also meet with Tata Group, CG Semi, Keynes Technology, SUCHI, and global semiconductor company Micron Technology. They plan to broadly discuss business content on various topics such as talent sharing, future cooperation, and local entry.
According to the Industrial Technology Workforce Supply and Demand Survey published annually by the Korea Institute for the Advancement of Technology, the domestic semiconductor workforce shortage increased by 21.5% from 1579 in 2019 to 1918 in 2023. The numbers for 2020-2022 were 1621, 1752, and 1784, respectively, showing a steady increase. Some predict that by 2031, the semiconductor industry workforce shortage could increase to a maximum of 81,000.
■ India's Excellent Post-Process... "Capture Talent"
The biggest reason the domestic semiconductor industry is turning to India is analyzed to be the excellent workforce acquisition. Currently, the semiconductor design workforce in India is estimated to be around 200,000, and even employing just 0.1% of them could somewhat alleviate the domestic semiconductor workforce shortage.
The field where India particularly excels is the post-process. The post-process is a crucial stage that determines the final form of a semiconductor chip, based on performance verification and stability assurance. A semiconductor industry official explained, "India doesn't have many semiconductor fabs (factories) yet, so there are more excellent talents in the post-process than in the front-end process."
Additionally, the fact that India, the world's most populous country, may see increased demand for semiconductor-required products like PCs or cars in the future, and the Indian government's provision of up to 70% subsidies (in the Gujarat region) for semiconductor manufacturing facility construction, also acted as significant attraction points. The industry predicts that the entry of partner companies into India could also be a boon for large semiconductor companies like Samsung Electronics and SK Hynix in the future. kjh0109@fnnews.com Kwon Jun-ho Reporter