South Korea is preparing a more than 10 trillion won ($7.30 billion) package to support its chip industry, the country’s finance minister said on Sunday.
South Korean Finance Minister Choi Sang-mok said the government would announce details of the package soon, but added that it will target chip materials, equipment makers, and fabless companies throughout the semiconductor supply chain.
The program could include also offers of policy loans and the setting-up of a new fund financed by state and private financial institutions, Choi told executives of domestic chip equipment makers at a meeting, the finance ministry said in a statement.
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The package is part of President Yoon Suk Yeol’s pledge to pour all possible resources into winning the “war” in chips.
In January, Yoon committed to extending tax credits on investments in the domestic semiconductor industry to boost employment and attract more talent.
The country, home to the world’s top memory chipmakers Samsung Electronics and SK Hynix, aims to expand tax breaks and support to raise the competitiveness of high-tech sectors including those involving chips, displays and batteries.
South Korea is also building a mega chip cluster in Yongin, south of Seoul, which it touts as the world’s largest high-tech chipmaking complex.
It is aimed at attracting chip equipment and fabless companies to the country.
Yoon said he expected a total initial investment of about 622 trillion won ($470.82 billion) in the cluster and the creation of at least 3 million jobs over 20 years.
Samsung has said it expects to invest $230 billion in the period through to 2042 to develop the chipmaking base.
- Reuters, with additional editing by Vishakha Saxena
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