South Korea is taking proactive measures to strengthen its position in the highly competitive global semiconductor industry, planning an ambitious support package valued at over 10 trillion won (around $7.30 billion). Announced by Finance Minister Choi Sang-mok, this initiative demonstrates the country's commitment to securing a leading role in the semiconductor market.
The planned investment is aimed at bolstering various segments of the semiconductor supply chain, including the production of chip materials, equipment manufacturing, and support for fabless companies that design chips but outsource their production. This strategic focus is intended to enhance South Korea's capabilities across the entire spectrum of semiconductor manufacturing, from initial material procurement to advanced chip design and production.
During a meeting with leaders from domestic semiconductor equipment manufacturers, Finance Minister Choi Sang-mok provided insights into the specifics of the upcoming support package. The government's plan includes offering policy loans, which are loans provided to key industries under favorable terms to support their growth and development. Moreover, there is an initiative to create a new investment fund.
This fund will be supported by financial contributions from both public institutions and private financial entities, designed to inject substantial capital into the semiconductor industry. By providing these financial incentives, the South Korean government aims to encourage technological advancements and increase production capacity within the country's semiconductor sector.
In addition to financial incentives, South Korea is embarking on the construction of a large-scale semiconductor complex in Yongin, a city located just south of the capital, Seoul. This project is part of a broader vision to establish what is expected to be the world's largest high-tech semiconductor hub.
The development of such a complex is strategic, aiming to attract leading technology firms and skilled professionals to South Korea, thereby fostering innovation and cutting-edge research in semiconductor technology. The presence of this mega hub is anticipated to significantly enhance the country's manufacturing capabilities and global competitiveness in the semiconductor industry.
President Yoon Suk Yeol has been vocal about his determination to prioritize the semiconductor industry, framing it as a pivotal battleground in the global race for technological dominance. His administration has promised to deploy all available resources to succeed in this "war," including offering enticing tax incentives to stimulate investment in the sector.
These tax benefits are designed to attract both domestic and international investors, encouraging them to commit capital to South Korea's growing semiconductor industry. By creating a more favorable investment climate, President Yoon aims to accelerate technological innovation and expand South Korea's influence in the global technology arena.
12.05.2024
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