Government to Establish Semiconductor Program Worth Over 10 Trillion Won

Fostering Materials, Parts, Equipment, and Fabless Industries

As competition for leadership in the semiconductor industry intensifies worldwide, the government is set to launch a support program worth at least 10 trillion won to strengthen semiconductor competitiveness. The initiative aims to focus on facility investment and research and development (R&D) across all semiconductor sectors, including materials, parts, and equipment (SoBuJang).

Choi Sang-mok, Deputy Prime Minister and Minister of Strategy and Finance, announced this policy during a meeting with semiconductor export companies at HPSP, a semiconductor equipment company located in Hwaseong, Gyeonggi Province, on the 10th. This visit was part of on-site activities marking the second anniversary of the Yoon Suk-yeol administration.

The semiconductor support program will cover all areas of semiconductor manufacturing facilities and post-processing. The government plans to raise more than 10 trillion won through policy financing by the Korea Development Bank, funds jointly established by fiscal, private, and policy financing sources, among others.

Deputy Prime Minister Choi explained, "This is an indirect fiscal support program," adding, "The government’s fiscal resources will mitigate underlying risks, while private and policy financing will jointly participate."

He further stated, "We intend to create a framework specifically to support R&D and facility investments in vulnerable areas such as SoBuJang and fabless (semiconductor design-specialized) sectors."

Through this, the government aims to build a semiconductor ecosystem encompassing major companies like Samsung Electronics and SK Hynix as well as SoBuJang, to compete with leading countries.

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok held a meeting with accompanying reporters after visiting semiconductor company HPSP located in Hwaseong-si, Gyeonggi-do on the 10th, marking the 2nd anniversary of the government launch.

Regarding the advanced industry fund mentioned by Minister of Trade, Industry and Energy Ahn Deok-geun, Choi said, "It is somewhat different from that." He explained, "The fund involves issuing bonds with government guarantees, but the government must obtain parliamentary approval for guarantees every year, which could make the process rigid."

The government plans to specify the funding methods through meetings such as the Economic Issue Review Meeting.

During the meeting, the semiconductor industry requested extensions and expansions of the tax credit for national strategic technologies, increased support for advanced industry infrastructure, elimination of support gaps between foreign and domestic companies, fostering and protection of core technologies, and nurturing of domestic semiconductor equipment companies.

Deputy Prime Minister Choi responded that he would actively consult with the National Assembly on extending the tax credit for national strategic technologies and review areas where the scope of these technologies needs to be expanded.

He also pledged to promptly complete preliminary feasibility studies for related projects such as the development of leading-edge semiconductor advanced packaging technologies and mini fabs linked to mass production of advanced semiconductors.

Regarding support for domestic semiconductor equipment companies, he said relevant ministries would coordinate and create a platform centered on the Semiconductor Industry Association to share information.

Choi emphasized, "It is important not only to do well but also to enable better performance first," adding, "Within the Yoon Suk-yeol administration’s term, we will identify what can be done through selection and concentration and demonstrate our commitment to putting it into practice."