Government Supports Overseas Procurement of Car Semiconductors... Exemption from Self-Quarantine and Simplification of Customs Procedures

Performance and Certification Evaluation Accelerated to Expand Short-Term Supply... 200 Billion KRW Invested in Future Car Semiconductor R&D

[Sejong=Asia Economy Reporter Kwon Haeyoung] To resolve the shortage of automotive semiconductors, the government will introduce a self-quarantine exemption system for businesspeople entering and leaving the country starting next month and promote COVID-19 vaccinations to support private companies' overseas procurement. The customs clearance procedures for automotive semiconductors will be simplified, and performance and certification evaluations for short-term supply expansion will be expedited. As a mid- to long-term measure, 200 billion KRW will be invested in research and development (R&D) of core semiconductor technologies for future vehicles.

On the 10th, the government announced the "Automotive Semiconductor Short-term Supply Response and Industrial Capability Enhancement Strategy" at the 6th Innovation Growth Big 2 Promotion Meeting held at the Government Seoul Office.

This is a countermeasure in response to the recent shortage of automotive semiconductors, which has caused production disruptions for most major automakers. Domestic automakers rely on overseas sources for 98% of automotive semiconductors, and the industry expects supply disruptions to continue at least until the third quarter.

First, the government decided to introduce a rapid review system for self-quarantine exemption when businesspeople enter and leave the country for automotive semiconductor procurement. When demand companies apply, the Ministry of Trade, Industry and Energy's Future Automobile Industry Division and Semiconductor Display Division will review the exemption from the two-week quarantine. COVID-19 vaccinations will also be promoted for businesspeople departing to purchase and procure automotive semiconductors. Customs clearance and logistics procedures for automotive semiconductors will be processed promptly.

The government will also identify automotive semiconductors that can be supplied as substitutes in the short term and quickly support performance evaluation and certification. Cooperation models between automotive semiconductor demand and supply companies will be discovered, and support will be provided for R&D, policy finance, and tax benefits.

Furthermore, by activating public-private cooperation channels, the government will strengthen consultations with overseas countries including Taiwan, which undertakes contract manufacturing of automotive semiconductors, as well as with overseas semiconductor companies to secure automotive semiconductor volumes.

As a mid- to long-term measure to strengthen domestic automotive semiconductor industrial capabilities, 204.7 billion KRW will be invested from 2020 to 2022 in developing core semiconductor technologies for future vehicles. Support will also be provided to convert and modify existing non-automotive semiconductors for automotive use to induce rapid commercialization of automotive semiconductors.

In addition, costs for prototype production before mass production of automotive semiconductors will be increased, and investments to expand domestic foundry infrastructure will be supported. A joint public-private mid- to long-term technology roadmap to promote automotive semiconductor self-reliance will also be established in the fourth quarter.

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