Group 1: South Korea's Semiconductor Dominance - South Korea's semiconductor industry, led by SK Hynix and Samsung, holds a significant market share in DRAM and NAND, with a combined 70% share in DRAM and nearly half in NAND [1][3] - The country's semiconductor exports are projected to reach a record $142 billion in 2024, accounting for one-fifth of total exports [1] Group 2: AI Chip Development - The South Korean government announced a plan to invest 150 trillion KRW (approximately $108 billion) over the next five years to develop AI, semiconductors, biotechnology, defense, robotics, and green transportation [3] - Rebellions, a South Korean AI chip company, has raised $225 million since its inception in 2020 and is known for its energy-efficient AI computing chips [4] - Sapeon Korea, an AI chip startup under SK Telecom, became South Korea's first AI chip unicorn with a valuation of 1.3 trillion KRW (approximately $1 billion) [4] Group 3: SiC Semiconductor Focus - South Korea aims to increase its self-sufficiency in SiC (silicon carbide) power semiconductors from 10% to 20% by 2028, with a government investment of 902 billion KRW [9][10] - SK Siltron CSS holds a 6% share of the global SiC wafer market and has signed a long-term supply contract with Infineon Technologies [10] - The South Korean government is also focusing on developing core technologies for SiC chips and has plans to build demonstration infrastructure [10][11] Group 4: Industry Challenges and Opportunities - South Korea has approximately 160 fabless companies, significantly fewer than China's over 3,000, indicating a need for growth in this sector [16][17] - The local market's capacity to absorb semiconductor production remains a concern, especially in the context of geopolitical tensions affecting global supply chains [17]

Core Insights - The global silicon carbide (SiC) wafer market is projected to grow from 143.6 billion yen in 2024 to 619.5 billion yen by 2035, representing an increase of approximately 4.3 times [1] - In 2024, the demand for SiC power semiconductors is expected to slow down, but sales volume is anticipated to increase by 81.9% year-on-year, primarily driven by Chinese wafer manufacturers [1] - The 6-inch wafer currently dominates the market, accounting for over 90% of sales, while the demand for 4-inch wafers is declining [2] Group 1 - The SiC power semiconductor market is expected to see a sales volume and revenue growth of about 20% year-on-year in 2025, despite a decline in prices due to the influx of cheaper products [1] - The diamond wafer market is projected to take off starting in 2026, with the market size expected to reach 4.6 billion yen by 2035 [3] - The commercialization of 2-inch diamond wafers is anticipated to accelerate the development of the diamond power semiconductor market [3] Group 2 - The aluminum nitride (AlN) wafer samples have begun shipping, and the application range is expanding, with full-scale production expected in the future [3] - The germanium wafer is planned to be developed as a 6-inch epitaxial wafer, with sales expected to begin around 2030 [3] - The silicon wafer market is expected to stabilize from 2025 onwards after a contraction in 2024, with the 6-inch wafer's practicality driving growth in GaN and gallium oxide wafer markets [3]