S.Korea announces bigger tax breaks, loans to bolster local chip industry, Telecom News, ET Telecom
Many countries are working to strengthen local chip supply chains as severe shortages affect industries such as automobiles, and in March US President Joe Biden signaled plans to invest $ 50 billion in semiconductor manufacturing and research.
About 153 chip companies, including global chip manufacturers № 1 and 2 Samsung Electronics and SK Hynix already have plans to invest a total of 510 trillion stinks or more between this year and 2030, according to Korea Semiconductor Industry Association.
“As semiconductor competition intensifies around the world, it is clear that we also need to increase our competitiveness in the semiconductor industry,” South Korean President Moon Jae-in said earlier this week.
Ongoing investments at home include Samsung’s planned third chip factory in Pyeongtaek, south of Seoul, which began site preparation last year and is expected to be completed in 2022, a city official in Pyeongtaek said.
SK Hynix is considering acquiring additional production capacity to produce 8-inch chips, the Ministry of Trade, Industry and Energy said in a statement Thursday, adding that no final decision has been made.
The government will increase tax breaks to 6% from the current 3% or lower for capital expenditures between the second half of 2021 to 2024 for large corporations implementing “key strategic technologies”, including semiconductors, the ministry said in a statement. .
The government will also offer about 1 trillion long-term loans to increase production capacity for 8-inch waffle chips and investment in materials and packaging.
Samsung Electronics, Hyundai Motor, the ministry and industry associations also agreed to join forces to address the shortage of car chips on Thursday, the presidential office said in a statement, without giving details.
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