South Korea Plans Over $7 Billion Support Package for Chip Industry

South Korea is set to roll out a substantial support package exceeding $7 billion aimed at bolstering its chip industry. This initiative underscores the nation's commitment to fortifying the competitiveness and resilience of its semiconductor sector amid global market challenges.

The finance minister announced that South Korea is preparing a support package exceeding 10 trillion won ($7.30 billion) for chip investments and research, with the aim of prevailing in the semiconductor industry. Finance Minister Choi Sang-mok revealed that the package would encompass chip materials, equipment manufacturers, and fabless companies across the semiconductor supply chain.

Choi informed executives of domestic chip equipment manufacturers at a meeting that the program might encompass policy loans and the establishment of a new fund, funded by both state and private financial institutions, as per the finance ministry's statement. Additionally, South Korea is constructing a vast chip cluster in Yongin, located south of Seoul, purported to be the world's largest high-tech complex. President Yoon Suk Yeol has pledged to allocate all available resources to succeed in the chip sector, pledging tax incentives to encourage investments.

Source: Reuters