Industrial Bank of Korea announced on the 1st that it has launched the ‘Special Program for Semiconductor Equipment Investment Support,’ which provides funding for equipment and research and development (R&D) investments across the entire semiconductor ecosystem (consumption, components, equipment, fabless, manufacturing, etc.).
In a situation where major global countries such as the United States are mobilizing all means, including subsidies and policy financing support, to foster the semiconductor industry, domestic semiconductor companies that have led the global market are facing a real crisis.
In the case of the United States, more than 70 trillion won in subsidies are planned to be provided under the CHIPS Act, and in addition to the 9 trillion won subsidy plan for Samsung Electronics, subsidies for SK Hynix are also under consideration.
The government also announced the ‘Comprehensive Support Plan for the Semiconductor Ecosystem’ on the 26th of last month at the Economic Ministers’ Meeting, providing 18 trillion won in financial support to respond to this global technological hegemony competition.
This Special Program for Semiconductor Equipment Investment Support is being promoted as part of the aforementioned support plan. It is a low-interest loan program operated with Industrial Bank of Korea’s own funds to promptly respond to the equipment investment demand of semiconductor companies facing fierce global competition until the government-funded linked program is fully operational.
The support targets domestic and foreign companies investing newly in all fields of the semiconductor industry in Korea. It supports the entire range, including not only large integrated semiconductor companies but also companies performing individual processes such as semiconductor design, packaging, and testing. The loan interest rate will apply the highest level of preferential rates that the bank can independently offer. In particular, relatively higher preferential interest rates will be applied to small and medium-sized enterprises, which are the main focus of support.
An official from Industrial Bank of Korea stated, “As a policy financial institution with strengths in industry, technology, and finance, we feel a responsibility to take the initiative in supporting the government’s industrial policies,” adding, “Amid the global emergence of a new industrial policy era, we will do our best to support the establishment of overwhelming manufacturing capabilities and enhance competitiveness in the semiconductor industry going forward.”
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