The South Korean government is aiming to foster the production of silicon carbide (SiC) and gallium nitride (GaN) power semiconductor.
The Ministry of Trade, Industry and Energy said on Thursday that the country will aim to develop over five commercial power chips by 2025.
Power chips that are made with SiC and GaN are used in inverters in electric cars and energy plants as well as artificial intelligence and 5G applications.
The ministry will also support companies to build six to eight inch wafer foundries (factories used for contract chip production) under the plan.
It will also help companies manufacture prototypes through government testing facilities in Busan.
The ministry will also provide research projects for companies to take part in. These will focus on chips for inverters and chargers, which can be commercialized more quickly.
It will also support companies developing new materials using SiC, GaN or gallium trioxide (Ga2O3) that can be used to manufacture power chips. It will also develop a product design kit for the power chips to share with the companies.