According to Yonhap News,

The South Korean government on Tuesday announced plans to increase investments in the semiconductor sector to help secure the industry's global competitiveness amid heightened uncertainty following the inauguration of the new U.S. administration.

"With the domestic foundation in system semiconductors being weak and increased uncertainties after the new U.S. government's launch, there is a growing call within the industry for expanded government support," the finance ministry said in a press release.

The government's support measures will include expanding the budget for investments in the semiconductor sector from the current 26 trillion won to 33 trillion won (US$23.2 billion) to build a "private-led" semiconductor innovation ecosystem, the ministry said.

The increased investment will first be allocated to building essential infrastructure, including funding for private companies building underground transmission lines at semiconductor clusters in Yongin and Pyeongtaek, located about 40 kilometers and 65 kilometers south of Seoul, respectively.

Samsung Electronics Co., the world's largest memory chipmaker, already operates several chip facilities in Yongin and surrounding areas. Its chipmaking rival SK hynix Inc. has also unveiled investment plans to create chip facilities in Yongin.

An additional 3 trillion won will be used to increase existing low-interest loans for the industry between 2025 and 2027, bringing the total to 20 trillion won, the ministry said.

The ministry also said efforts will be made to enhance the overall competitiveness of the semiconductor ecosystem, including the construction of fabrication plants for advanced chips and the launch of large research and development (R&D) projects.

The government will also support the development of next-generation semiconductors that will include adding equipment to verify design errors before the prototype production process, according to the ministry.

The budget will also be used to attract talent by launching projects for local workers with doctoral or master's degrees, as well as recruiting overseas experts and top-tier professionals.



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Source: Yonhap News (April 15, 2024)