Korea¡¯s DB HiTek readies venture in auto chipmaking under govt blessing

South Korea¡¯s mid-sized chip foundry DB HiTek Co. has embarked on a process to produce automotive chips amid global shortage that has been hampering with production of Korean automakers under full government blessing.

The company asked for industrial and government support upon confirming its initiation of research and development of next-generation semiconductors using silicon carbide (SiC) and gallium nitride (GaN) that can replace silicon for better quality during a closed inaugural meeting of an industry-wide chip council under government sponsorship on Sept. 28.

During the meeting, DB HiTek CEO and Vice Chairman Choi Chang-sik requested state projects to create early-stage demand and help his company and others build mass-production and supply chain system.

Chips used in the automotive sector require higher levels of product safety and reliability, compared to those for IT devices, and thus on-demand design and long-term partnership between suppliers and clients are necessary.

Amid protracted global chip shortages, DB HiTek has been floated as a strong candidate to start the business for the first time in Korea. SiC and GaN semiconductors are high value-added products considered as the next-generation power chips for automobiles thanks to higher power efficiency and durability.

The Korean government vowed to provide the necessary support. The Ministry of Trade, Industry and Energy plans to respond promptly if it is requested of aid in commercialization of automotive chip technology R&D and state-led R&D projects, said an official from the ministry.

It will back the necessary manpower for foundry work by increasing budget by more than three times. It also promised to make regulatory exceptions and grants for DB facility investment or expansion.

DB HiTek shares finished Thursday up 2.44 percent at 54,600 won ($46.11) in Seoul trading.

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