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South Korea to Announce $7 Billion Package For Chip Industry

The package is part of President Yoon Suk Yeol’s pledge to pour all possible resources into winning the “war” in chips


South Korean President Yoon Suk-yeol attends an interview with Reuters in Seoul
South Korean President Yoon Suk-yeol attends an interview with Reuters in Seoul.

 

South Korea is preparing a more than 10 trillion won ($7.30 billion) package to support its chip industry, the country’s finance minister said on Sunday.

South Korean Finance Minister Choi Sang-mok said the government would announce details of the package soon, but added that it will target chip materials, equipment makers, and fabless companies throughout the semiconductor supply chain.

The program could include also offers of policy loans and the setting-up of a new fund financed by state and private financial institutions, Choi told executives of domestic chip equipment makers at a meeting, the finance ministry said in a statement.

 

Also on AF: China Capture of TSMC Would Be ‘Devastating’ For US – Raimondo

 

The package is part of President Yoon Suk Yeol’s pledge to pour all possible resources into winning the “war” in chips.

In January, Yoon committed to extending tax credits on investments in the domestic semiconductor industry to boost employment and attract more talent.

The country, home to the world’s top memory chipmakers Samsung Electronics and SK Hynix, aims to expand tax breaks and support to raise the competitiveness of high-tech sectors including those involving chips, displays and batteries.

South Korea is also building a mega chip cluster in Yongin, south of Seoul, which it touts as the world’s largest high-tech chipmaking complex.

It is aimed at attracting chip equipment and fabless companies to the country.

Yoon said he expected a total initial investment of about 622 trillion won ($470.82 billion) in the cluster and the creation of at least 3 million jobs over 20 years.

Samsung has said it expects to invest $230 billion in the period through to 2042 to develop the chipmaking base.

 

  • Reuters, with additional editing by Vishakha Saxena

 

Also read:

As Korea Mulls Joining US Chip War, China Says ‘Don’t Give In’

US to ‘Indefinitely Extend’ China Chip Waivers For South Korea

South Korea Green Lights Robots on Its Streets – Register

Competition in Chip Industry an ‘All-Out War’, South Korea Says

China Says it Will Strengthen Chip Ties With South Korea

Firm Smuggled 53,000 Banned US Chips to China – BusinessKorea

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]