South Korea is planning to establish a state-backed contract fabrication factory, preliminarily named the Korea Semiconductor Manufacturing Company (KSMC), to compete with Taiwan Semiconductor Manufacturing Company (TSMC) in the global semiconductor market. The idea was first presented on December 18 at a seminar held by the National Academy of Engineering of Korea (NAEK), with the goal of creating a balanced ecosystem that supports not only Samsung's advanced technology nodes but also more mature technologies and fabless companies. The project is expected to require an investment of $13.9 billion, with a projected profit of $208.7 billion by 2045. The new factory will be designed to produce semiconductors using cutting-edge technology, including 5nm and 3nm processes. The KSMC will also focus on supporting the growth of domestic chip designers and manufacturers, aiming to make South Korea a global leader in the semiconductor industry. This move is seen as a strategic response to the dominance of TSMC, which supplies chips to major tech companies such as Apple and Qualcomm. The establishment of the KSMC will not only increase South Korea's capability to produce advanced semiconductors but also enhance its position in the global supply chain. Additionally, the project is expected to create a strong ecosystem that will attract investments and drive innovation in the industry.