On Tuesday, South Korea revealed a major boost in its support for the semiconductor industry, increasing the aid package to 33 trillion won ($23.25 billion) — a 25% jump from the 26 trillion won package announced last year.
This strategic move comes amid increasing pressure on the government to enhance support in light of global policy uncertainties, particularly under the current U.S. administration, and intensifying competition from Chinese semiconductor manufacturers.
As per a joint statement from several ministries, including the Ministry of Trade, South Korea will expand its financial assistance program for the chip sector to 20 trillion won, up from the previously pledged 17 trillion won.
This increased investment aims to support companies as they navigate mounting costs and compete on the global stage.
South Korea, Asia’s fourth-largest economy, is home to semiconductor giants Samsung Electronics and SK Hynix. While they lead in memory chip production, they have lagged in chip design and contract chip manufacturing compared to global rivals.
