Fostered 16 semiconductor start-ups in the two years since its launch
Sales and workforce surged by 60%... 'Extraordinary achievement'
Created ecosystems such as housing space and EDA tool support
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The Innovation Center for System IC (ICS), launched in 2020 to discover and foster specialized semiconductor fabless companies, managed to achieve a 60% growth in semiconductor startups within two years. Analysis shows that it has put semiconductor startups on a stable growth trajectory by supporting semiconductor intellectual property (IP), electronic design automation (EDA) tools, and experimental equipment. They have proven the need to creating an early ecosystem in order to strengthen the competitiveness of system semiconductors.
The sales of 16 semiconductor startups, targeted for support, increased by 66% as a result of the ICS discovering and nurturing early-stage companies in the semiconductor field for two years. When the center was established in 2020, the total sales of these companies were KRW 12.3 billion. Last year, it had significantly increased to KRW 31 billion. It is unusual for fabless startups, such as semiconductor design, to surge in sales in such a short period of time.
It also contributed to nurturing startup workforce. A total of 367 executives and employees were eligible for support last year, up 67% from the previous year (148). During the center support period, 137 young people were hired by the companies eligible for support. Some companies also succeeded in attracting multiple investments during the support period.
This achievement is due to the creation of an environment in which semiconductor startups can focus on technology development. A new fabless company used the center's space as a design office. Support for EDA tools, which are a huge burden on semiconductor startups, was also provided. EDA tools have a license price of up to several hundred million won per type.
The center worked with Synopsys, Cadence, and Siemens EDA to help semiconductor startups use EDA tools at an affordable price. The total benefit amount of the company is estimated at KRW 1.5 billion.
Resident companies can perform instrumentation and measurements on semiconductor design results within the center. The center supports test equipment that is highly utilized by initial design companies. It was able to shorten the development period for prototypes by supporting the production of semiconductor test boards.
The center plans to significantly increase the business budget starting this year, to expand support for fabless companies. It plans to secure a new center five times larger than the current space to accommodate more tenants. In addition to an office space for semiconductor startups, an educational space for training design personnel will also be provided. The goal is to relocate to a new center next year.
It also operates a training course to nurture semiconductor design professionals. Design experts in the field directly participate in the training to foster industry-tailored talent. It is expected to contribute to resolving the workforce shortage for semiconductor design companies and design houses. Yong-jae Kwon, head of the ICS, said, “In order to realize our vision of becoming a system semiconductor powerhouse, it is important to create an early ecosystem," adding, “We plan to create an environment where semiconductor startups can succeed in South Korea."
◇ The Innovation Center for System IC was established under the guidance of The Ministry of Trade, Industry and Energy in 2020 to support semiconductor fabless startups' entire growth cycles. In the system semiconductor field, it plans to promote and provide commercialization support such as startup and technology consulting, semiconductor design and development support, semiconductor intellectual property (IP) management, verification and diffusion, and prototype production and mass production. It is also developing a 'multi-project wafer (MPW) support project' that is crucial for the development of semiconductor prototypes.
By Staff Reporter Dong-jun Kwon djkwon@etnews.com