Shruti Kothari | Jaipur | Business Remedies | April 16, 2025 | South Korea announced a significant expansion of its support for the semiconductor industry, increasing the total aid to 33 trillion won (approximately $23.25 billion), up from the previously pledged 26 trillion won. This move aims to bolster domestic chipmakers like Samsung Electronics and SK hynix in the face of rising global competition and policy uncertainties arising from the U.S. administration.
The support package
= Financial assistance: The government will allocate 20 trillion won specifically for the semiconductor sector, up from the earlier 17 trillion won. This funding will be managed through the state-run Korea Development Bank and will provide low-interest loans to companies investing in new chip infrastructure.
= Infrastructure development: Plans include the construction of a mega semiconductor cluster in Yongin, Gyeonggi Province, which is expected to be the world’s largest chipmaking complex. This initiative aims to attract chip equipment and fabless companies, with investments totaling 622 trillion won from companies like Samsung Electronics and SK hynix.
= Support for small and medium enterprises (SMEs): Over 70% of the benefits from this comprehensive support program will be directed toward SMEs, including the establishment of a 1 trillion won semiconductor ecosystem fund to support promising fabless companies and materials, parts, and equipment makers.
