Updated May 12th, 2024 at 10:33 IST

South Korea plans $7.3 billion support package for chip industry

The proposed programme may encompass policy loans and the establishment of a new fund, funded jointly by state and private financial institutions.

Reported by: Business Desk
Semi Conductor Chips | Image:Unsplash / Representative
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South Korea is gearing up to unveil a support package exceeding 10 trillion won ($7.30 billion) aimed at bolstering investments and research in the semiconductor sector, announced Finance Minister Choi Sang-mok on Sunday. The initiative comes as South Korea sets its sights on securing a leading position in the global semiconductor industry.

Choi Sang-mok revealed that the government would soon disclose the specifics of the package, which will target chip materials, equipment manufacturers, and fabless companies across the semiconductor supply chain.

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The proposed programme may encompass policy loans and the establishment of a new fund, funded jointly by state and private financial institutions. These details were shared by Choi during a meeting with executives from domestic chip equipment makers, as per a statement from the finance ministry.

In addition to the support package, South Korea is advancing efforts to develop a mega chip cluster in Yongin, situated south of Seoul, positioning it as the largest high-tech complex of its kind globally.

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President Yoon Suk Yeol has made a commitment to allocate all feasible resources towards securing dominance in the "war" for chip supremacy, pledging tax incentives to encourage investments.

South Korea's proactive measures reflect its determination to strengthen its foothold in the semiconductor industry, reflecting a strategic move to maintain competitiveness and foster innovation in this critical sector.

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(With Reuters inputs)
 

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Published May 12th, 2024 at 10:33 IST