Announcement of 26 Trillion Won Semiconductor Support Plan... Samsung and Hynix Say "It Will Be a Great Help"

17 Trillion Won Support Financial Program Established
Including 1 Trillion Fund for Fabless and Sobujang
"A Stepping Stone to Create Semiconductor Investment Environment"

On the 23rd, the government announced that it will invest a total of 26 trillion won to support the semiconductor industry, which was unanimously welcomed by the domestic semiconductor sector.

Samsung Electronics stated on the same day, "The government's support policy will be a great boost to enhancing the future competitiveness of the semiconductor industry."

They also said, "The government's announcement to take responsibility for infrastructure such as water supply and roads is forward-looking and constructive," adding, "Samsung Electronics will do its best to strengthen its leadership in the fierce global semiconductor competition through this opportunity."

Samsung Electronics Pyeongtaek Campus view / Photo by Samsung Electronics

SK Hynix shares the same stance. The company said, "We actively welcome the semiconductor industry support policy announced by the government today," explaining, "This support policy will serve as a stepping stone to create a favorable environment for Korean semiconductor companies to invest amid intense global competition surrounding the semiconductor industry.

They continued, "SK Hynix will make further efforts to ensure that planned investments proceed smoothly and take the lead in establishing a stable domestic semiconductor ecosystem," adding, "We ask for the government's continuous interest and support so that the global status of Korea's semiconductor industry can grow."

Earlier, President Yoon Suk-yeol chaired the 2nd Economic Issue Review Meeting at the Yongsan Presidential Office on the same day, focusing on semiconductor industry support measures. President Yoon stated, "Semiconductors are a field where a national all-out effort is underway," and announced plans to prepare semiconductor support measures worth a total of 26 trillion won.

The government plans to establish a 'Semiconductor Financial Support Program' worth 17 trillion won through the Korea Development Bank to increase investment liquidity in the semiconductor industry. It will also push to extend the semiconductor investment tax credit, which is set to expire this year, and support corporate research and development (R&D) and facility investments.

To accelerate the creation of the 'Semiconductor Mega Cluster' in the southern Gyeonggi region, the government also announced plans to devote full efforts to securing infrastructure such as electricity, water supply, and roads. They have also promised to establish a 1 trillion won semiconductor ecosystem fund to nurture fabless (semiconductor design) and SoBuJang (materials, parts, and equipment) companies.