South Korea Preparing To Pump In Support Package Of Around $7 Billion Into The Chip Industry

South Korea is gearing up with plans for a substantial support package aimed at bolstering chip investments and research, totalling over 10 trillion won ($7.30 billion). Finance Minister Choi Sang-mok, speaking on Sunday, emphasised the country’s strategic focus on emerging victorious in the semiconductor industry’s competitive landscape. He revealed that the government is on the verge of unveiling comprehensive details regarding the support package, which is designed to benefit chip materials providers, equipment manufacturers, and fabless companies across the semiconductor supply chain.

Choi indicated that the support program might encompass initiatives such as policy loans and the establishment of a new fund backed by both public and private financial institutions. This announcement was made during a meeting with executives from domestic chip equipment manufacturers, as communicated by the finance ministry in a statement.

ALSO READ | OnePlus Nord CE4 Review In 5 Points: Is This The Most Meaningful Smartphone Under Rs 25,000?

In addition to these measures, South Korea is actively constructing a mega chip cluster in Yongin, situated south of its capital city, Seoul. This initiative aims to position the country’s chip industry at the forefront by establishing the world’s largest high-tech complex dedicated to semiconductor production.

President Yoon Suk Yeol has underscored his commitment to channelling all available resources into securing victory in the semiconductor “war.” He has pledged tax incentives and benefits for investments as part of the broader strategy to strengthen South Korea’s position in the global chip market. With the support package set to be unveiled soon, experts and industry stakeholders eagerly await further details, anticipating a significant boost to South Korea’s semiconductor sector.

South Korea’s escalated ambitions in the semiconductor industry are poised to intensify the rivalry between China and the US. Through these initiatives, South Korea aims to expand its presence in the global non-memory chip market and create approximately 3 million new job opportunities in the semiconductor sector.