"Government Will Support Corporate Efforts"... President Moon Leads 'Semiconductor Side Support' (Comprehensive Report 2)

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] President Moon Jae-in stated, "The government will become one with companies to build a semiconductor powerhouse," and announced plans to provide unprecedented support to semiconductor companies with the goal of becoming a comprehensive semiconductor powerhouse by 2030.

He emphasized the establishment of a K-semiconductor belt in the Gyeonggi and Chungcheong regions, offering up to 50% tax incentives for semiconductor research and development investments, and training 36,000 semiconductor specialists.

On the 13th, during the 'K-Semiconductor Strategy Report' held at Samsung Electronics' Pyeongtaek Line 3, President Moon said in his remarks, "The semiconductor industry has shifted from competition between companies to competition between nations."

He added, "(Countries) are providing unprecedented support such as subsidies and tax benefits at the national level to implement global semiconductor supply chains centered on their own countries," and said, "Our government will also become one with companies to build a semiconductor powerhouse."

President Moon praised the semiconductor export achievements and the bold investments by semiconductor companies, saying, "I pay tribute to the challenges and courage of companies that are taking the lead with more proactive investments in the face of uncertainty."

He continued, "We will firmly support the efforts of companies," and announced, "We will establish a K-semiconductor belt for world-class semiconductor activities centered on Pyeongtaek, Hwaseong, and Cheonan in the Gyeonggi-Chungcheong region."

[Image source=Yonhap News]

He also added plans to build a supply chain covering semiconductor processes from design to manufacturing and packaging, including materials, parts, and equipment. In Pangyo, where IT companies are concentrated, a fabless valley will be created to enhance competitiveness in design, and the Chungju area including Cheongju will be developed into a packaging-specialized complex to improve semiconductor product quality.

President Moon said, "Yongin, where SK Hynix's new production complex will be located, will be developed as a specialized complex for technology, equipment, and high-end parts equipment. Hwaseong and Cheonan will be developed into advanced semiconductor equipment clusters through teamwork with global leading companies," adding, "We will provide comprehensive support not only for complex development but also to ensure timely corporate investments and rapid production through tax, finance, regulatory reforms, and infrastructure expansion."

He also presented tax support plans for the semiconductor industry. President Moon said, "We will designate semiconductors as a national innovation strategic technology and expand tax support for technology investment up to six times," adding, "For research and development investments, we will provide up to a 50% tax credit and operate special financial support programs to fund technology investments."

He continued, "We will shorten various permits and approval periods as much as possible and enable rapid construction of semiconductor facilities," and added, "We will train 36,000 core semiconductor talents over 10 years and focus on developing core technologies with high potential such as next-generation leading semiconductors." He also announced the official start of discussions to amend the 'Semiconductor Special Act' to expand talent training and rapid investment support.

President Moon said, "Through the K-semiconductor strategy, where the public and private sectors unite, we will overcome the fierce waves of global supply chain restructuring," and stated, "We will firmly maintain the world's No. 1 position in memory semiconductors and become the best in system semiconductors as well, achieving the goal of becoming a comprehensive semiconductor powerhouse by 2030."

[Image source=Yonhap News]

On the same day in Pyeongtaek, the government announced the 'K-semiconductor' strategy, which includes investing more than 510 trillion won over 10 years. The strategy was established through the Emergency Economic Central Disaster and Safety Countermeasures Headquarters and the Big 3 Innovation Growth Promotion Meeting, and President Moon announced it during his visit to a corporate site.

In particular, major semiconductor companies such as Samsung Electronics, SK Hynix, Nepes, and Rebellion have agreed to make large-scale investments totaling more than 510 trillion won over 10 years from 2021 to 2030. The government plans to support the private sector's investment of over 510 trillion won without disruption by rapidly providing investment incentives such as the creation of the K-semiconductor belt, tax, financial, and regulatory improvements, as well as expanding growth foundations like talent training and technology development.

About 70 people attended the event, including government officials, semiconductor companies, demand companies, universities, and related organizations. Gyeonggi Province Governor Lee Jae-myung also attended. In addition to semiconductor companies such as Samsung Electronics and SK Hynix, fabless companies like Silicon Works, packaging companies like Nepes, and demand companies such as Hyundai Motor Company participated. Government officials included the Deputy Prime Minister for Economy, Deputy Prime Minister for Social Affairs, Minister of Trade, Industry and Energy, Minister of Science and ICT, and Chairman of the Financial Services Commission.

Minister of Trade, Industry and Energy Moon Seung-wook said at the strategy announcement, "The government and companies, public and private sectors, promise to build a global semiconductor supply chain by 2030." Following him, Samsung Electronics Vice Chairman Kim Ki-nam emphasized, "We will accelerate investment in cutting-edge facilities by expanding the planned investment from 133 trillion won to 177 trillion won by 2030." SK Hynix Vice Chairman Park Jung-ho also announced plans to invest 120 trillion won over 10 years in memory and foundry centered on the Yongin cluster.

Following them, Nepes Chairman Jung Chil-hee revealed a 1 trillion won investment plan over five years, and Rebellion CEO Park Sung-hyun, an AI semiconductor startup, announced plans to challenge the 'high-end artificial intelligence (AI) chip' sector.

Meanwhile, during the event, three agreements were signed to strengthen the semiconductor ecosystem: cooperation and solidarity between vehicle semiconductor demand and supply companies, public-private investment for training advanced semiconductor personnel, and investment in advanced equipment clusters.

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