May 23rd 2024.
During a meeting on economic issues involving various ministries and financial regulators, South Korean President Yoon Suk Yeol announced on Thursday that the country is set to introduce a comprehensive package worth 26 trillion won to support the chip industry. This move comes as a response to the increasing global competition in this critical industry.
According to reports from Yonhap news agency, the package includes a range of initiatives such as financial programs, research and development projects, and infrastructure support for chip manufacturers, material suppliers, and fabless companies that specialize in chip design. One of the key aspects of this support package is the establishment of a 17 trillion won financial program dedicated to infrastructure investment at the state-run Korea Development Bank.
In addition to this, a 1 trillion-won chip industry fund will also be created to assist fabless and chip material companies, while a new R&D infrastructure will be built specifically for small and medium-sized enterprises. President Yoon emphasized that this support package is aimed at benefiting the entire semiconductor supply chain, with a particular focus on helping SMEs.
During the meeting at the presidential office, President Yoon stated that the ultimate goal of this support package is to promote increased investment and profits for companies, which will ultimately lead to the creation of more quality jobs, boosting the economy and increasing tax revenue.
In order to strengthen the country's position in the semiconductor industry, President Yoon also urged the related ministries to come up with measures to support system semiconductors and foundry businesses, with the aim of closing the gap with global leaders. Currently, Samsung Electronics and SK hynix are the top players in memory chip production, but they lag behind Taiwan's TSMC in the foundry business, which is the world's largest contract chip maker.
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