2024-05-14 10:48:16
The South Korean Ministry of Economy and Finance announced on Sunday the allocation of an aid package worth more than seven billion dollars to support the electronic chip industry as part of the campaign to strengthen the semiconductor sector.
This initiative comes after Seoul pledged last year to build the largest chip center in the world using $240 billion in private investments, coming mainly from the giant South Korean company Samsung, which is the largest manufacturer of memory chips in the world.
Economy and Finance Minister Choi Sang-mok said, according to a statement issued by his ministry on Sunday, that the government “is preparing an aid package worth more than 10 trillion won ($7.2 billion) to support semiconductor manufacturing products, chip materials, and manufacturing in all areas of the chip industry.”
Choi told local chip manufacturers at a meeting on Friday, according to the statement, that the package could be formed through “a new fund financed by private and public financial institutions.”
Asia’s fourth-largest economy is trying to invest heavily in six basic technology sectors, including chip and battery industries, areas in which giant South Korean companies have become experienced.
South Korea is the headquarters of Samsung and SK Hynix, leaders in the production of memory chips, including high-bandwidth (HBM) chips used in artificial intelligence equipment.
Semiconductors are South Korea’s most prominent export, and their value reached $11.7 billion in March, its highest level in two and a half years. This amount represented about 20 percent of total South Korean exports, according to figures published by the Ministry of Commerce.
In May 2022, Samsung revealed a huge investment plan worth 450 trillion won ($346 billion) for the next five years, aiming to make it a leader in several sectors from semiconductors to vital products.
Seoul and Tokyo, in addition to the United States and European countries, are working to enhance chip production locally in light of the geopolitical concerns surrounding Taiwan, the most prominent producer in the world, and the competition between Washington and Beijing.
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2024-05-14 10:48:16