South Korea to create $3.5b chip fund for semiconductor materials and hubs

South Korea has earmarked 5 trillion won, equaling $3.52 billion, for a fund designated to develop chip materials, components and small design firms.

This development was announced by presidential chief of staff Kang Hoon-sik on Monday, in a bid to cut the country’s reliance on foreign suppliers that feed its world-leading chip manufacturers.

$3.5 billion fund comes with more

According to Reuters, Seoul is also pairing the 5 trillion won fund with an additional 5 trillion won in trade financing for export-leaning suppliers, which brings the total direct support for the industry to 10 trillion won.

In addition, the government is creating a 10-year, 1 trillion won program to tie large chipmakers to the small and mid-sized suppliers positioned at every stage of production, inclusive of design, testing all the way to manufacturing.

South Korea’s government also wants parliament to pass a Mega Special Zones Act by the end of the year, which is a law meant to compress permitting, environmental reviews and infrastructure work for major industrial sites.

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