Government backs bill to establish semiconductor MCE association

Ministry of Trade, Industry and Resources MI

The South Korean government has expressed support for legislation aimed at establishing an industry association for semiconductor materials, components and equipment (MCE)suppliers, signaling momentum for the creation of a unified industry body.

According to Rep. Koh Dong-jin on Monday, the Ministry of Trade, Industry and Resources has submitted a review opinion endorsing a proposed amendment that would allow the formation of a dedicated MCE association.

Koh, a former head of the IM division and CEO of Samsung Electronics who entered politics in 2024, proposed the amendment in August last year. The bill seeks to revise the Special Act on Strengthening the Competitiveness of the MCE Industry and Stabilizing Supply Chains. Under the proposal, companies primarily engaged in the development or manufacturing of materials, parts or equipment in sectors designated by presidential decree, including semiconductors, would be allowed to establish an association with approval from the industry minister.

The amendment also assigns the association a broad mandate, including participation in government-funded and commissioned projects, research and development support, workforce training, policy recommendations and supply chain stabilization efforts. The government would be authorized to provide financial and administrative support to the organization.

Koh said that after ongoing consultations with the ministry, he recently received an official position stating that the ministry “agrees” with both the establishment of the association and the support functions outlined in the bill. He expressed optimism that the legislation would pass swiftly with the ministry’s backing during parliamentary deliberations.

“The establishment of a semiconductor MCE association should serve as a central coordinating body that unites fragmented capabilities,” Koh said, adding that it would help ensure consistent policy direction, strengthen collaborative frameworks centered on the association, enhance responsiveness to global technology standards and expand support across the industry.