K-Defense Industry Speeds Up Localization of Weapons' 'Brains' as Defense Semiconductor Promotion Bill Passes Cabinet Meeting

A legal foundation will be established for the localization of defense semiconductors, which are central to South Korea's self-reliant defense and handle the control and computing functions of advanced weapons systems. The Ministry of National Defense and DAPA are moving ahead with legislation for a special act to secure independent development capabilities and systematically foster the related industry. Their strategy is to complete the technological security infrastructure needed for K-Defense Industry to lead future battlefields.■ Defense Semiconductor Promotion and Support Act passes as a key strategic asset in the AI eraOn the 2nd, the Ministry of National Defense and DAPA said the Act on the Promotion and Support of Defense Semiconductors passed the State Council of South Korea. The law is designed to quickly secure development and manufacturing capabilities for defense semiconductors, a core component of advanced weapons systems, and to build a systematic industrial ecosystem. It is scheduled to be promulgated in June and, after subordinate regulations are prepared, is expected to take effect in the fourth quarter of this year at the earliest.
Until now, defense semiconductors have lacked a dedicated law, which made it difficult to reflect the special characteristics of the defense sector, distinct from the civilian semiconductor industry, in policy. To address this, the government has operated a pan-government Defense Semiconductor Development Task Force since October 2025, with DAPA, the Ministry of Science and ICT, and MOTIE participating, to support legislation. With the new law, a permanent support framework will be established, including the formulation of a basic development plan, support for specialized R&D projects, the introduction of a priority procurement system, and the designation of defense semiconductor operators.
Lee Yong-cheol, commissioner of DAPA, said the legislation would mark an important turning point for the defense industry, moving beyond manufacturing weapons systems to securing self-reliant capabilities in semiconductors, a core technology. He added that it would strengthen the foundation for self-reliant defense and contribute to revitalizing the national economy.■ What are defense semiconductors, the 'hidden brains' of weapons? Localization must go beyond the current 1% levelDefense semiconductors are the 'hidden brains' that handle control and computation in modern advanced weapons systems, including precision-strike radar in guided missiles, autonomous flight systems in drones, and encryption chips in military communications networks. Unlike commercial semiconductors used in ordinary smartphones, these are specialized components that must operate without a single error in extreme battlefield conditions, from minus 50 degrees Celsius to several hundred degrees of heat, as well as under strong impact and radiation exposure. That is why they require an exceptionally high level of technology.
The problem is that the localization rate for defense semiconductors used in South Korea's advanced weapons systems is effectively below 1%. Although the domestic share is increasing, the military still relies heavily on imports from semiconductor powerhouses such as the United States and Europe for most of the defense semiconductors it needs. The reason localization remains so low is not only technology, but also the nature of defense chips, which are produced in small quantities across many product types. Unlike civilian semiconductors, which are mass-produced in the tens of millions for profit, defense chips are needed only in quantities of hundreds to thousands, leaving major Korean companies with little incentive to absorb the huge costs of retooling and building production lines.■ The 'final step' toward self-reliant defense: independence is essential for sustainable K-Defense Industry exportsTo become a true defense powerhouse and complete self-reliant defense, independence in defense semiconductors is now an unavoidable task of the era. Even if Korea designs, produces, and exports world-class weapons such as the K2 Black Panther main battle tank and K9 Thunder, it is difficult to confidently call them fully Korean-made if control over the key chips at their core remains in the hands of overseas suppliers. The same concern was highlighted by the Russo-Ukrainian war, where global supply chain disruptions and geopolitical tensions could cut off access to critical chips and bring weapons production to a halt, creating a serious security vacuum.
Localization of defense semiconductors is also a lifeline for the sustainable overseas export of K-Defense Industry products. The defense semiconductors currently imported and used are subject to the International Traffic in Arms Regulations (ITAR) of the exporting country. As a result, even if Korea tries to export its weapons to a third country, approval can be blocked if the foreign supplier refuses on the grounds of the domestically made semiconductors installed in the system, leaving Korea vulnerable to technological dependence. The push to enact the Defense Semiconductor Promotion and Support Act is expected to become a decisive turning point, allowing K-Defense Industry and Korea's weapons systems to break free from advanced countries' regulatory screens, achieve self-reliance as complete systems, and expand their reach across the world.

[email protected] Lee Jong-yoon Reporter