South Korea Announces $19 Billion Support Package for Semiconductor Sector
South Korea has unveiled a substantial support package worth 26 trillion won ($19 billion) for its semiconductor industry. This initiative aims to bolster the nation's position as a global leader in chip manufacturing.
The package, announced by President Yoon Suk Yeol, includes a 17 trillion won ($12 billion) financial support program through the state-run Korea Development Bank. This program will encourage large-scale investments by semiconductor firms, driving further innovation and growth in the sector.
Additionally, a 1 trillion won ($733 million) fund will be established to support equipment manufacturers and fabless companies. These companies design chips but do not manufacture them, playing a crucial role in the semiconductor ecosystem.
President Yoon has also directed the industry ministry to develop innovative strategies to enhance South Korea's competitiveness in the non-memory chip sector. This focus on non-memory chips reflects the country's ambition to diversify its chip production and reduce its reliance on memory chips.
This updated support package surpasses earlier plans mentioned by Finance Minister Choi Sang-mok, who had indicated a target of over 10 trillion won ($7.3 billion) for chip investments and research. The increased investment demonstrates the government's commitment to solidifying South Korea's position as a leading player in the global semiconductor industry.
The semiconductor industry is crucial for South Korea's economy, contributing significantly to its exports. In December 2023, Samsung Electronics and SK Hynix, two of the world's top memory chip makers, achieved record-breaking production and shipment growth. This highlights the industry's importance to the nation's economic success.
South Korea's commitment to the semiconductor industry is further evidenced by its construction of a mega chip cluster in Yongin, south of Seoul. This cluster aims to become the world's largest high-tech chipmaking complex, attracting leading companies and further solidifying the country's position as a global hub for semiconductor innovation.