"If Large Corporations Invest 10 Trillion in Semiconductor Facilities, 1 Trillion Tax Credit"

Up to 50% Dramatic Tax Credit Benefits for National Strategic Technology Investments Including Semiconductors

[Asia Economy Reporter Park Sun-mi] As the government expands tax support for research and development (R&D) and facility investment in national strategic technologies and new growth and core technologies, the semiconductor industry will be able to receive tax credit benefits.

According to the Ministry of Economy and Finance on the 24th, if a major semiconductor company invests 10 trillion won in machinery and equipment for producing 15-nanometer DRAM, previously they could receive a tax credit of up to 300 billion won (3%), but going forward, the credit will be expanded to 1 trillion won (10%).

This is because investing in the three major national strategic technology fields of semiconductors, batteries, and vaccines will allow for an unprecedented tax credit benefit of up to 50%. R&D expenses can be credited up to 40% (50% for small and medium enterprises), and investment amounts in machinery, production lines, etc., can be credited up to 10% (12% for medium-sized enterprises, 20% for small and medium enterprises).

The applicable semiconductor industry includes the memory sector such as design and manufacturing technologies for DRAM of 15 nanometers or less and NAND flash with 170 layers or more, as well as the system sector including design and manufacturing technologies for automotive, energy efficiency improvement, power semiconductors, and DDI chips. The materials, parts, and equipment sector related to semiconductors (such as wafer development and manufacturing technologies for 15nm or less DRAM and NAND with 170 layers or more) also falls within the scope of national strategic semiconductor technologies and can receive expanded tax credit benefits.

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