The Korean Finance Minister, Choi Sang-mok, announced South Korea’s readiness to support semiconductor investments and research with a value exceeding 10 trillion won (7.3 billion dollars), as part of its efforts to win in the semiconductor industry war.
The minister stated that the government will soon reveal details of a package targeting the semiconductor field, equipment manufacturers, and non-manufacturing companies in the semiconductor supply chain. The Ministry of Finance confirmed in a statement that the program may include offers for political loans and establishing a new fund funded by governmental and private financial institutions.
The semiconductor industry is vital to South Korea, with major companies like Samsung and SK Hynix. The new support package is expected to provide a strong boost to these companies and others in the industry, making it easier for them to diversify and expand their semiconductor manufacturing projects in South Korea.
In addition to the financial measures, South Korea will establish a group of semiconductor factories in Yongin, south of the capital Seoul. It is expected that this group, considered the largest in the world, will enhance South Korea’s position in the global semiconductor market.
President Yoon Suk-yool pledged to allocate all possible resources to win the “war” in the semiconductor field and promised to provide tax incentives for investments. This commitment reflects the importance of the semiconductor industry to South Korea’s economy and global standing. This announcement comes at a time when the global semiconductor industry is witnessing supply chain disruptions and increased demand due to the rapid digital transformation caused by the COVID-19 pandemic.
South Korea’s move is likely to increase competitiveness in the global semiconductor market, especially with other major players like the United States and China, who are also working to strengthen their local semiconductor industries.
