SEOUL, 23rd May, 2024 (WAM) -- President Yoon Suk Yeol of South Korea said Thursday that his country will introduce a chip industry support package worth 26 trillion won (US$19 billion) to bolster the critical industry amid intensifying global competition.
According to Yonhap News Agency, the package includes financial programmes, research and development (R&D) initiatives, and infrastructure support for chip manufacturers, material suppliers and fabless companies specialising in chip design.
Central to this support package is creating a financial support programme worth 17 trillion won dedicated to infrastructure investment at the state-run Korea Development Bank.
The government also plans to extend tax breaks that are set to expire at the end of the year to facilitate large-scale investment as a semiconductor mega cluster project is currently underway in Gyeonggi Province.
A 1 trillion-won chip industry fund will be created to assist fabless and chip material companies, and R&D infrastructure will be built for small and medium-sized enterprises (SMEs).