Bio to unveil semiconductor and battery supply chain restructuring strategy in Q4

Q4 AI Semiconductor and Electric Vehicle Battery Lease Case Discovery
Customized Policy Support for 'Solidarity and Cooperation' Across Technology Development, Infrastructure, and Business Restructuring
Simultaneous Promotion of Crisis Overcoming and Future Preparation Including Liquidity Support and Business Restructuring

Sung Yun-mo, Minister of Trade, Industry and Energy. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The government announced that it will create a consortium of 55 bio materials, parts, and equipment organizations, including Celltrion and Samsung Biologics, to reorganize the supply chain and generate synergy. In the fourth quarter, it plans to consecutively unveil strategies for semiconductors and batteries.

By strengthening solidarity between demand and supply companies, the government intends to respond long-term to the Fourth Industrial Revolution era by utilizing the 'Solidarity and Cooperation Industrial Strategy,' which links excellent technology to actual profits.

◆ Bio, Semiconductor, Electric Vehicles... Strengthening Matching Between Demand and Supply Companies in Profitable Future Industries

On the 24th, the Ministry of Trade, Industry and Energy announced that it will actively promote the 'Solidarity and Cooperation Industrial Strategy.' With the launch of the bio materials, parts, and equipment consortium, it declared that it will focus its capabilities on discovering and promoting consortia related to AI semiconductors and electric vehicle battery leasing in the fourth quarter.

The strategy was introduced as a breakthrough to overcome the COVID-19 crisis and innovate the industrial ecosystem.

At the launch ceremony of the 'Bio Materials, Parts, and Equipment Solidarity and Cooperation Consortium' held that day, Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy stated, "We will fully mobilize public sector means such as research and development (R&D) and demand creation, and provide bold policy support so that companies can find active incentives for cooperation."

The event was attended by Minister Sung, Lee Jeong-dong, Economic and Science Special Advisor to the Presidential Office, Seo Jeong-seon, Chairman of the Korea Bio Association, six company representatives including Celltrion and Samsung Biologics, and Jung Yang-ho, President of the Korea Institute for Industrial Technology Evaluation and Planning.

Source: Ministry of Trade, Industry and Energy

Going forward, the government, economic organizations, and industry-specific associations will work together to discover representative cases such as 'bio materials, parts, and equipment,' 'AI semiconductors,' and 'electric vehicle battery leasing.' They will establish cooperation models categorized as 'crisis-overcoming type' and 'future-preparation type.'

The 'crisis-overcoming type' policy broadly supports ▲ expanding the main actors from large corporations to cooperative companies, other industry companies, and public institutions ▲ increasing focus from automobile, steel, and textile industries to semiconductor and shipbuilding industries ▲ providing liquidity support, demand creation, and mediation of disputes between companies.

The 'future-preparation type' is a model that spreads ecosystem-innovative solidarity and cooperation, including technology development and commercialization, supply chain stabilization, investment expansion, business restructuring, and digital transformation.

◆ 170 Billion KRW Invested Next Year in New 'Solidarity and Cooperation R&D' Budget

Source: Ministry of Trade, Industry and Energy

Next year, 170 billion KRW, which is 20% of the R&D budget, will be newly invested in the 'Solidarity and Cooperation R&D' budget. Additionally, 140 billion KRW will be supported next year for the use of facilities and equipment such as regional innovation clusters.

To stabilize the materials, parts, and equipment supply chain, the government will support large corporations' purchase commitments for joint R&D outcomes in the second half of the year. The target includes 100 core technologies developed jointly by demand and supply companies in materials, parts, and equipment.

Similar to the case announced the previous day supporting Samsung Display and its partners' business restructuring from liquid crystal display (LCD) to quantum dot organic light-emitting diode (QD OLED), the government plans to increase cases where demand and supply companies participate together. Incentives such as preferential treatment for materials and parts technology development, demonstration, and mass production base projects will be considered.

Minister Sung emphasized, "To overcome the crisis and ensure companies' long-term survival and development, efforts by individual economic actors alone are insufficient. Solidarity and cooperation are the strongest weapons to gain an advantage in intensifying global competition and to win against COVID-19."

He added, "The government plans to actively support the expansion of solidarity and cooperation across various fields and their sustainable establishment within the industrial ecosystem."

This content was produced with the assistance of AI translation services.