South Korea Announces $7 Billion Boost for Semiconductor Sector

South Korea Announces $7 Billion Boost for Semiconductor Sector

South Korea is set to inject over $7 billion into its semiconductor industry in a bid to support chip investments and research. Finance Minister Choi Sang-mok outlined the government's plan, which aims to enhance the entire supply chain, focusing on chip materials, equipment makers, and fabless companies. The funding strategy includes offering policy loans and potentially establishing a new fund that would combine state and private financial resources.

In addition to financial support, South Korea is developing what it claims will be the world's largest high-tech complex in Yongin, located south of Seoul. This initiative is part of a broader $470 billion project to create a semiconductor "mega cluster," positioning the country at the forefront of global chip production amid intensifying competition and technological rivalries, particularly between the US and China.

President Yoon Suk Yeol has committed to furthering South Korea's competitive edge in the semiconductor industry by promising tax benefits for relevant investments. These measures are part of the government's efforts to maintain its leadership in memory chip production and respond to the US government's calls for allies to limit China's access to advanced semiconductor technology. The detailed blueprint of the support package will be disclosed in the near future.


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