UPDATED. 2024-07-12 07:53 (금)
Investment in fabless chip companies dries up in Korea 
Investment in fabless chip companies dries up in Korea 
  • Jang Keyoung Yoon
  • 승인 2022.12.20 09:37
  • 댓글 0
이 기사를 공유합니다

Steep decline in Q3
Image: TheElec
Image: TheElec

Investment in fabless chip companies that design semiconductors continue to drop in South Korea.

TheElec talked to multiple sources in the country’s fabless scene __ all voiced their concern that spending in the sector by funds is drying up.

A CEO of a local fabless chip firm said that the investment flow this year has been not good.

Government-backed funds that were supposed to be created by now have not materialized due to this, they said.

When the CEO founded his company, financial institutes were willing to spend hundreds of thousands of dollars.

But as they plan to scale, the company had been less fortunate in securing funding, the CEO added.

Government fund Korea Venture Investment conventionally invest in venture capitals, and these capitals in turn secure additional private funds to create their own funds.

But the global economic downturn has caused such investments to drop starting in the second half of the year.

South Korea’s SME ministry said venture investment dropped 40% year-on-year during the third quarter to 1.25 trillion won.

Only 22 companies secured over 10 billion won in funding, half of last year’s 43 companies.

Korea Venture Investment, in its survey of 684 people working in the VC sector, said nearly half of them expected investment volume to drop in 2023 compared to this year.

An executive of a South Korean chip design house company said that investments were focused on trends such as AI or companies with existing revenue.

Another CEO of a different fabless chip company said the government’s policy so far has failed on all fronts such as investment, verification, and software tool support.

삭제한 댓글은 다시 복구할 수 없습니다.
그래도 삭제하시겠습니까?
댓글 0
계정을 선택하시면 로그인·계정인증을 통해
댓글을 남기실 수 있습니다.

  • 515, Nonhyeon-ro, Gangnam-gu, Seoul, Republic of Korea 4F, Ahsung Bldg.
  • 대표전화 : 82-2-2658-4707
  • 팩스 : 82-2-2659-4707
  • 청소년보호책임자 : Stan LEE
  • 법인명 : The Elec Inc.
  • 제호 : THE ELEC, Korea Electronics Industry Media
  • 등록번호 : 서울, 아05435
  • 등록일 : 2018-10-15
  • 발행일 : 2018-10-15
  • 발행인 : JY HAN
  • 편집인 : JY HAN
  • THE ELEC, Korea Electronics Industry Media Prohibiting unauthorized duplication,publishing,modification and distribution the material on this Site for any purpose.
  • Copyright © 2024 THE ELEC, Korea Electronics Industry Media. All rights reserved. mail to powerusr@thelec.kr