TAIPEI (Taiwan News) —  South Korean industry and academia have proposed creating a “Korea Semiconductor Manufacturing Company” modeled after TSMC.

The plan aims to build a balanced ecosystem between foundries and fabless companies, Korea Biz Wire reported Thursday. It was revealed at a seminar held by National Academy of Engineering of Korea on Dec. 18.

Industry sources say a NT$454 billion (US$13.9 billion) investment could generate NT$6.8 trillion in economic benefits.

Sungkyunkwan University Professor Kwon Seok-jun said Taiwan maintains a balanced ecosystem. “This allows over 250 fabless firms to thrive naturally in Hsinchu,” he added.

South Korea is the world’s largest memory maker, per Tom’s Hardware. However, it lags behind Taiwan in logic process technology and chip design.

Furthermore, concerns were raised about whether KSMC could handle advanced processes. SK Hynix CEO Kwak No-jung suggested repurposing Samsung’s legacy facilities.

Other proposals include strengthening the domestic semiconductor ecosystem and attracting and retaining talent.

Korea Semiconductor Industry Association Executive Director Ahn Ki-hyun said investments and government support can help sustain South Korea’s semiconductor leadership. He called for flexibility in South Korea’s 52-hour workweek and direct investments in smaller materials and equipment firms.