By Nikhil Dedha, New Delhi, April 21
South Korean semiconductor companies are looking to enter India initially through the software and research and development segments, leveraging the country's large and skilled talent pool, according to Kyunghoon Kim, Head of India and South Asia Team, Korea Institute for International Economic Policy.
In an exclusive conversation with ANI, Kim said that companies such as Samsung Electronics and SK Hynix are currently focusing on the software side of the semiconductor value chain in India.
"At the moment, they are considering entering India on the software side of the semiconductor industry and taking advantage of the large, very talented workforce that India has and carrying out R&D activities in the country," he said.
He added that while long-term investments in backend semiconductor facilities are likely as India develops its infrastructure, the immediate focus will remain on R&D and software-led capabilities.
Kim noted that South Korea is one of the leading semiconductor-producing countries in the world, with globally competitive firms across the value chain. He said that India presents a strong opportunity for collaboration, particularly in design, development and talent-driven segments.
"Over the long term, as backend facilities are developed, companies like Samsung and SK Hynix will definitely think of investing more in India," he added.
Beyond semiconductors, Kim said India and South Korea can expand cooperation across multiple sectors to strengthen economic ties.
He noted that trade between the two countries has remained relatively muted since the Comprehensive Economic Partnership Agreement (CEPA) came into force in 2010, and called for its upgrade to include new areas such as digital trade, green partnerships, supply chains and economic security.
He also highlighted the need to improve the presence of Korean small and medium enterprises (SMEs) in India by simplifying regulations, offering support mechanisms and developing Korea-focused industrial parks.
On shipbuilding, Kim said South Korea's globally competitive maritime sector is increasingly looking at India as a key destination, supported by government initiatives such as the plan to procure 436 ships worth around USD 25 billion and Rs 70,000 crore maritime development package.
He added that Korean firms are exploring partnerships with Indian companies, with HD Hyundai signing MoUs with entities such as Cochin Shipyard and others.
In the steel sector, Kim pointed to collaboration between POSCO and JSW Steel for a 6 MTPA integrated steel plant in India, along with plans for a low-carbon steel joint venture in Odisha, expected to begin operations by 2031.
He further noted a strong South Korean presence in India's electronics manufacturing sector, with Samsung producing up to 120 million mobile phones and LG Electronics investing USD 600 million in Andhra Pradesh to expand appliance manufacturing.
Kim said there is also scope for cooperation in renewable energy, green hydrogen, biotechnology and pharmaceuticals, while India's growing manufacturing competitiveness could gradually help increase exports to South Korea and reduce trade imbalance.
Overall, he said, deeper collaboration across sectors could significantly strengthen India-South Korea economic relations.
- ANI
Reader Comments
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.
Leave a Comment