South Korea Announces $19 Billion Support to Chip Sector

| Updated on 24 May 2024

South Korea on Thursday announced a 26 billion won ($19 billion) support package for the chip industry. This support package from South Korea, home to chipmakers like Samsung and SK Hynix, will keep up in areas like chip design and contract manufacturing amid global pull in the semiconductor market. 

President Yoon Suk Yeol said a financial support programme worth about 17 trillion won was planned through the state-run Korea Development Bank to back investments by semiconductor companies. 

South Korean President, Yoon said “As we all know, semiconductors are a field where all-out national warfare is underway. Win or lose, that depends on who can make cutting-edge semiconductors first.”

This move is motivated by the global race of semiconductor manufacturing in which South Korea is falling behind. 

With this, the President also promised to extend tax benefits for chip investments, due to expire at the end of this year, to boost employment and attract more talent to the industry.

Korea is currently building a “mega chip cluster” in Yongin, south of Seoul, talked up as the world’s largest high-tech chipmaking complex.

Finance Minister Choi said the government would streamline bureaucracy and cut red tape to help speed up the process of manufacturing the chipmaking complex. 

Apart from this, the government would also launch a “1 trillion won chip industry ecosystem fund” to support fabless chip design firms and equipment makers. 

Countries all around the world are supporting the chip-making sectors and pouring billions of dollars into the industry.

Gaurav Pal

Tech Journalist

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