The Ministry of SMEs and Startups (MSS) has launched the Fabless Startup Comprehensive Support Project to systematically develop fabless startups within the system semiconductor industry. This move recognizes the growing global significance of the sector, spurred by advancements in AI technology.

Fabless startups, which focus on semiconductor design without manufacturing facilities, are increasingly crucial for developing innovative technologies not typically pursued by larger corporations. These startups are instrumental in acquiring technologies for emerging markets like AI and low-power semiconductors, necessitating robust support.

This initiative is the first phase of the newly introduced ‘Micro Super Gap’ program under the ‘Super Gap Startup 1000+ Project‘ that commenced in January. The program aims to provide tailored support for fabless startups at various stages of development, following recommendations from the Fabless-Foundry Council for Mutual Growth. This council was established in April 2024 by MSS in partnership with the Korea Fabless Industry Association (KFIA) to facilitate regular dialogue among domestic foundries.

Under the project, 30 promising fabless startups will be chosen and categorized into three developmental stages: development, growth, and scale-up, with each stage receiving specific forms of support:

• Development Stage: Six early-stage startups will receive KRW 100 million (approximately USD 75,000) for technology commercialization, along with essential design assets and opportunities for investor relations to help attract further investment.
• Growth Stage: Twenty startups will receive KRW 200 million (about USD 150,000) each to aid technology commercialization as they prepare to enter the domestic market. These startups will also benefit from prototype production processes and the chance to collaborate with large domestic corporations.
• Scale-up Stage: Four advanced startups aiming for the international market will get KRW 250 million (around USD 187,500) each for technology commercialization. These companies will also receive support for product validation through partnerships with large corporations that have the necessary infrastructure for semiconductor mass production.

Applications will be accepted from February 11 to February 27. Startups that show exceptional performance during the evaluation will receive additional support to help them enter the global market through the “Super Gap Startup” project.

The MSS also plans to convene the Fabless-Foundry Council for Mutual Growth in the first quarter to discuss the “2025 Fabless Challenge” implementation and policies supporting fabless startups. These discussions aim to boost the competitiveness of Korea’s fabless industry and the larger system semiconductor sector.

Minister OH Youngju stated, “Nurturing fabless startups in key areas is essential to revitalizing the system semiconductor industry, a future growth engine for the country.” She emphasized the government’s commitment to enhancing policies that ensure the steady growth and enhanced global competitiveness of these startups.