South Korea plans $7.3b package for chip manufacturing investments

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South Korea plans to roll out a support package focused on chip manufacturing research and investment, which will cost over 10 trillion won (US$7.3 billion), Reuters reported.

Finance minister Choi Sang-mok said that the country will reveal more details on the plan soon. With this initiative, the government aims to boost the semiconductor supply chain, focusing on chip materials, essential equipment makers, and fabless companies.

The minister suggested that sector-specific policy loans might be a part of the scheme. These loans may come from a fund co-financed by the government and private institutions.

Additionally, South Korea intends to build a chip cluster complex in Yongin, which is part of the Seoul metropolitan area. This complex is expected to create at least 3 million jobs over 20 years.

In January, South Korean President Yoon Suk Yeol had already announced plans to prolong tax credits for investments in the local semiconductor sector, which aims to stimulate job creation and attract skilled professionals to the industry.

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Currency converted from South Korean won to US dollar: US$1 = 1,368.30 won.