South Korea's $19bn chip support package: apply now
The South Korean government has confirmed that it is ready to start granting aid to chip firms this month from its vast investment fund.
In May the country announced the creation of a USD 19 billion stimulus package including loans and investment capital. Last Wednesday the finance ministry offically launched the ‘Semiconductor Ecosystem Support Package’ at the Ministerial Meeting on Economic Affairs.
The ministry said it is now ready to provide low-interest loans worth a collection USD 12.22 billion to firms with compelling proposals. It will also expand tax incentives to eligible companies by another three years.
These plans bring Korea into line with US, Europe and Japan – all of which have launched huge investment projects to on-shore chip manufacture and bolster domestic supply chains. The Korean government also plans to invest around USD 3.3 billion in nurturing talent for R&D projects of the chip segment starting 2025 through 2027.
South Korea is a global powerhouse – home to the world’s top memory chip makers Samsung Electronics and SK Hynix – but it has fallen behind in some areas such as semiconductor design and contract manufacturing. In fact, its share of the fabless design space is reckoned to be 1%.
