South Korea is preparing a $7.3 billion support package for its chip industry to boost investments and research. Finance Minister Choi Sang-mok revealed the strategy, which targets fabless businesses, equipment manufacturers, and chip materials. Policy loans and a new fund supported by public and private organisations might be included in the package.
President Yoon Suk Yeol has promised tax breaks for investments, highlighting the semiconductor industry’s strategic significance.
In Yongin, South Korea is constructing the largest high-tech complex in the world, a megachip cluster. This action demonstrates its determination to rule the semiconductor industry. The news and the issues facing the global semiconductor industry as a result of the COVID-19 pandemic’s effects on supply chains and rising demand align.
Due to their increased efforts in their respective semiconductor sectors, China and the US will face more rivalry as a result of South Korea’s ambitions. Notably, South Korea has started large-scale initiatives such as fabless industry-only zones and a semiconductor megacluster.
With these initiatives, South Korea hopes to increase its share of the global non-memory chip market and generate nearly 3 million new employment opportunities within the semiconductor industry.
