How South Korea Can Achieve Defense Semiconductor Self-Sufficiency: A Comprehensive Guide

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[iNews24 Reporter Choi Ran] As modern warfare shifts toward energy- and information-centered operations, experts say South Korea must secure self-reliance in defense semiconductors.

Defense semiconductors are chips used in military equipment, modules and components for operational purposes.

Joo Jin-woo told the seminar on the 15th that South Korea currently depends on foreign suppliers for about 99% of its defense semiconductors, and that RF semiconductors used in radar systems are entirely imported.

Using the Russia-Ukraine war as an example, Joo said the conflict highlights a change in modern warfare: energy and information operations have become more central than manpower, and electromagnetic effects can be more decisive than traditional firepower. In short, sensors and semiconductors now shape the battlefield.

He added that compound semiconductors are essential across domains — from guided munitions and surveillance to electronic warfare and command, control and communications. These are small but indispensable components, so achieving supply-chain independence is critical.

Joo also pointed to structural barriers that keep private firms out of the defense market. He said the military’s reliability evaluations take too long, development timelines are extended, the market is small, and programs demand low-volume, high-mix production.

He argued that to attract capable companies into the defense sector, those firms first need to build sufficient capacity in civilian markets so they can survive commercially.

Joo noted an advantage of compound semiconductors: building their production lines can cost less than silicon fabs. Still, different product types require separate process equipment, and private companies struggle to shoulder those costs alone.

He proposed that capital-intensive foundries be built by the public sector, allowing firms to use those facilities to supply system integrators.

Representatives from defense contractors at the discussion described operational challenges and agreed on the need for semiconductor self-reliance.

Cho Su-hyung, director of the Electro-Optics Research Lab at Hanwha Systems, said high-performance optical sensors still rely heavily on foreign suppliers. If those supplies are cut off in a crisis, domestic mass production would be impossible.

He pointed to quantum cascade laser (QCL) semiconductors — compound devices used in laser weapons — noting they cost tens of millions of KRW (approximately tens of thousands of USD) apiece and are all imported.

Cho said he always tells defense companies to prioritize domestically produced items when they exist. But he warned that high development costs deter firms from taking on those projects and called for initial development funding to reduce that barrier.

Jung Seong-mook, director of the Optical Information Convergence Research Lab at LIG Defense & Aerospace, echoed field frustrations.

Jung said attempts to localize during the system acquisition phase can stretch projects over many years — in some cases nearly a decade — and by the time a product is ready, higher-spec foreign alternatives are already on the market, widening the technology gap.

He added that there’s insufficient information on domestic firms’ technical capabilities and how their work can be integrated into ongoing research. He called for better information sharing and the creation of industry clusters.

Jung also urged that localization budgets be allocated from the initial research stage rather than after a system program begins, so technology development aligns with actual program needs. He asked the Defense Acquisition Program Administration to reform relevant policies.