South Korean Government Announces Massive Chip Support Plan

TapTechNews May 23rd news, according to Bloomberg, the South Korean government announced a total of 26 trillion Korean won (TapTechNews note: currently about 138.06 billion Chinese yuan) of chip support plan to help South Korean enterprises such as Samsung Electronics and SK Hynix maintain a leading position in the increasingly fierce competition.

This total 26 trillion Korean won plan is more than twice the amount of the 10 trillion Korean won plan proposed by South Korean Minister of Finance Choi Sang-mok two weeks ago, including 17 trillion Korean won of financial support and tax incentives for specific investments, and will extend the semiconductor industry tax incentives that expire at the end of this year.

After the news was announced, the share prices of both Samsung and SK Hynix increased by about 1%.

As the world's largest memory chip producer, South Korea has always been more inclined to let large conglomerates such as Samsung and SK Hynix lead the investment in the chip field. However, the South Korean government is now playing a more active role and plans to establish a large chip factory cluster outside of Seoul.

This plan is the largest single investment in the chip industry supported by the South Korean government so far, and the South Korean government plans to finalize the details of this plan in June.