News on May 14th, the South Korean government held the “K-Semiconductor Strategy Report Conference” at Samsung’s Pyeongtaek factory, officially announcing a “K Semiconductor Strategy” with an investment of 510 trillion won (approximately 2.9 trillion yuan) in the next 10 years.
South Korean President Moon Jae-in said at the meeting that the goal is to build South Korea into the world’s largest semiconductor manufacturing base and lead the global semiconductor supply chain.
According to the introduction, the “K Semiconductor Strategy” is a national semiconductor strategy based on the investment of 153 companies such as Samsung Electronics and SK Hynix in South Korea in the next 10 years, and the Korean government provides financial and policy support behind it.
The South Korean government will unite enterprises to establish an efficient industrial cluster integrating semiconductor production, raw materials, parts, equipment, and cutting-edge equipment, and design. The goal is to build the world’s largest semiconductor manufacturing base by 2030.
Moon Jae-in said that the government will plan the world’s largest semiconductor industry supply chain-“K-Semiconductor Industry Belt” in Gyeonggi Province and Chungcheong Province. In the northern part of the industrial belt, cities such as Banqiao, Qixing, Hwaseong, Pyeongtaek, and Onyang are connected longitudinally, and the eastern part covers Icheon, Yongin, and Cheongju in a “K” shape.
In addition, the South Korean government also announced on the same day that it will provide related companies with a series of policies such as tax relief, expansion of loan plans and infrastructure.
Among them, the tax rate on semiconductor research and development and equipment investment will be reduced by up to 50%, and will provide one trillion won (approximately 5.7 billion yuan) of low-interest loans for the Korean local chip industry.
The South Korean government predicts that if the plan is successfully implemented, South Korea’s annual semiconductor exports will increase from last year’s 99.2 billion U.S. dollars to 200 billion U.S. dollars in 2030, and related jobs will also increase to 270,000.
According to the Korea Semiconductor Association, about 153 semiconductor companies, including Samsung Electronics and SK Hynix, plan to invest a total of 510 trillion won (approximately 2.9 trillion yuan) from this year to 2030. The total investment this year will reach 41.8 trillion won.