South Korea is preparing plans for a support package for chip investments and research set to be worth more than 10 trillion won ($7.3 billion), the country's finance minister said on Sunday, after setting the sights on winning a "war" in the semiconductor industry.
Finance Minister Choi Sang-mok said the government would soon announce details of the package, which targets chip materials, equipment makers, and fabless companies throughout the semiconductor supply chain.
The program could include offers of policy loans and the setting-up of a new fund financed by state and private financial institutions, Choi told executives of domestic chip equipment makers at a meeting, the finance ministry said in a statement.
South Korea is also building a mega chip cluster in Yongin, south of its capital, Seoul, which it touts as the world's largest such high-tech complex.
The announcement for the aid package comes as Asia's fourth-largest economy aims to invest heavily in six key technologies, including chips, displays and batteries, all areas where the country's tech giants are well-established already.
South Korea is home to two of the world's largest memory chip makers: Samsung Electronics and SK Hynix.
Semiconductors are Seoul's leading export and hit $11.7 billion in March, their highest level in almost two years, accounting for a fifth of South Korea's total exports, according to figures released by the trade ministry.
In May 2022, Samsung announced a massive 450 trillion won investment blueprint over the next five years aimed at making it a frontrunner in key sectors from semiconductors to biologics.
Securing supplies of advanced chips has become a crucial issue internationally, with the United States and China locked in a fierce battle for control of the chips market.
President Yoon Suk Yeol has vowed to pour all possible resources into winning the "war" in chips, promising tax benefits for investments.
