[Aju News DB]
SEOUL -- South Korea envisaged a concerted state project to enhance the competitiveness of its microchip industry, a top economic official said Wednesday, citing a strong challenge from Chinese companies.
Trade, Industry and Energy Minister Paik Un-kyu told an industry conference in parliament that the technological gap with China is "rapidly" shrinking. "There are concerns over whether the super-cycle may shrink in the near future."
In February, the Seoul government unveiled a project to develop highly efficient new microchips. "We are planning a large-scale national project to secure design and technology on next-generation semiconductors and nurture talent," Paik said, adding the government would carry out a feasibility study in the second half of this year.
China was a major topic at a meeting of Samsung Electronics shareholders in March, with top executives responding to a flurry of questions over how to head off a daunting challenge by Chinese smartphones, microchips and displays.
Top Samsung executives warned that competition with Chinese companies would get fierce in smartphone and other fields, calling for pre-emptive measures to widen a gap between them. Samsung is the world's largest microchip producer.
reporter
Lim Chang-won
cwlim34@ajunews.com
