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South Korea Prepares US7 Billion Support Package for Chip Industry

South Korea is preparing a support package worth over US$7 billion for the chip industry. The package will target chip materials, equipment makers, and fabless companies in the semiconductor supply chain. The government may offer policy loans and establish a new fund financed by state and private financial institutions.

South Korea prepares support package worth over $7 billion
Credit: REUTERS

Finance Minister Choi Sang-mok announced on Sunday that the government is finalising plans to provide financial assistance for chip investments and research.


The support package will target various segments of the semiconductor supply chain, including chip materials, equipment manufacturers, and fabless companies. Details of the package, which may include policy loans and the establishment of a new fund backed by both state and private financial institutions, will be announced soon.


In addition to the financial support, South Korea is also making strides in infrastructure development. The country is currently constructing a mega chip cluster in Yongin, located south of the capital city, Seoul. This high-tech complex is being touted as the largest of its kind in the world, further solidifying South Korea's position in the global chip industry.


President Yoon Suk Yeol has expressed his commitment to winning the "war" in the chip sector and has pledged to allocate all possible resources to achieve this goal. As part of this effort, the government is considering offering tax benefits to encourage investments in the semiconductor industry.

 
  • South Korea is preparing a support package worth over US$7 billion for the chip industry.

  • The package will target chip materials, equipment makers, and fabless companies in the semiconductor supply chain.

  • The government may offer policy loans and establish a new fund financed by state and private financial institutions.


Source: REUTERS

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