This initiative follows its pledge last year to build the world's largest chip centre using $240 billion of private investment, primarily from Samsung Electronics, the world's largest memory chip maker, as it seeks an edge in the global industry.
S. Korea to set up $7-billion aid package for chip industry, illustration photo/ Source: freepik.com |
The government "is preparing an assistance package of more than 10 trillion won ($7.2 billion) to support fabless, chips materials and manufacturing equipment in all areas of chips industry", Finance Minister Choi Sang-mok said, according to the finance ministry statement released Sunday.
The $7.2-billion package could be created through "a new fund financed by private and public financial institutions", Choi told executives of domestic chip makers at a meeting on Friday according to the statement, with further details to be announced.
It comes as Asia's fourth-largest economy aims to invest heavily in six key technologies, including chips, displays and batteries, all areas where the country's tech giants are well-established already.
South Korea is home to two of the world's largest memory chip makers: Samsung Electronics and SK Hynix.
Semiconductors are Seoul's leading export and hit $11.7 billion in March, their highest level in almost two years, accounting for a fifth of South Korea's total exports, according to figures released by the trade ministry.
In May 2022, Samsung announced a massive 450 trillion won investment blueprint over the next five years aimed at making it a frontrunner in key sectors from semiconductors to biologics.
Securing supplies of advanced chips has become a crucial issue internationally, with the United States and China locked in a fierce battle for control of the chips market.
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