South Korea prepares support package worth over $7 bln for chip industry

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Finance Minister Choi Sang-mok said the government would soon announce details of the package, which targets chip materials, equipment makers, and fabless companies.

A Samsung Electronics Co. 12-layer HBM3E, top, and other DDR modules arranged in Seoul, South Korea, on Thursday, April 4, 2024. Samsung's profit rebounded sharply in the first quarter of 2024, reflecting a turnaround in the company's pivotal semiconductor division and robust sales of Galaxy S24 smartphones.

Finance Minister Choi Sang-mok said the government would soon announce details of the package, which targets chip materials, equipment makers, and fabless companies throughout the semiconductor supply chain. The program could include offers of policy loans and the setting-up of a new fund financed by state and private financial institutions, Choi told executives of domestic chip equipment makers at a meeting, the finance ministry said in a statement.

South Korea is also building a mega chip cluster in Yongin, south of its capital, Seoul, which it touts as the world's largest such high-tech complex. President Yoon Suk Yeol has vowed to pour all possible resources into winning the "war" in chips, promising tax benefits for investments.

 

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