Seoul, [Date] – In a bold move to strengthen its position in the global semiconductor industry, South Korea is preparing a support package exceeding 10 trillion won ($7.30 billion) for chip investments and research. The announcement comes as the nation sets its sights on winning what President Yoon Suk Yeol has termed a “war” in the semiconductor sector.
Finance Minister Choi Sang-mok revealed on Sunday that the government will soon detail the comprehensive package aimed at bolstering every segment of the semiconductor supply chain. “We are committed to supporting chip materials, equipment manufacturers, and fabless companies to enhance our industry’s competitiveness,” Choi told executives of domestic chip equipment makers during a meeting in Seoul, as reported by the finance ministry.
The support program is expected to include policy loans and the establishment of a new fund, jointly financed by state and private financial institutions. This initiative seeks to provide financial backing for companies across the semiconductor landscape, fostering innovation and capacity building.
Complementing these efforts, South Korea is advancing the construction of a mega chip cluster in Yongin, just south of the capital. Touted as the world’s largest high-tech complex, the Yongin cluster is poised to become a central hub for semiconductor production and research, further solidifying the nation’s role in the global chip market.
President Yoon has emphasized the strategic importance of the semiconductor industry, pledging to “pour all possible resources” into securing a leading position. The government plans include offering significant tax benefits to stimulate investments and drive growth within the sector.
“Our focus is on creating an ecosystem where innovation thrives, and our companies can compete at the highest level globally,” President Yoon stated in recent remarks. “The semiconductor industry is crucial to our economic future and technological independence.”
South Korea’s aggressive push into the semiconductor arena reflects a broader trend among Asian nations striving to enhance their technological capabilities and secure supply chains amid global competition.
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Reference(s):
South Korea prepares over $7 billion support package for chip industry
cgtn.com
