Chu Kyung-ho Visits SK Hynix: "Actively Supporting Semiconductor Super-Gap"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho visited SK Hynix's Icheon plant on the 27th during the Chuseok holiday to promise active support for achieving a semiconductor super-gap.

The Ministry of Economy and Finance stated that the visit was arranged for Deputy Prime Minister Choo to encourage the semiconductor industry, which has continued innovative investments despite difficult business conditions due to the semiconductor market downturn since the second half of last year, and to listen to industry difficulties in securing the next-generation semiconductor super-gap.

Deputy Prime Minister Choo received explanations about the advanced semiconductor production processes on the production line and toured the DRAM production facilities and manufacturing environment. He said, "It is fortunate that semiconductors, which hold a key position in our economy, are showing signs of recovery from the previous slump," adding, "I hope that the rebound in the semiconductor market will lead to increased exports and drive our economy forward."

At the meeting, companies and the Semiconductor Association reported that the global semiconductor market, which had been sluggish due to decreased demand and price drops, is showing signs of recovery from the fourth quarter of this year following supply adjustments such as production cuts, and full recovery is expected next year. They also proposed support measures such as tax incentives and deregulation to enable companies to actively invest in the competition for semiconductor leadership with major competitors like the United States and the European Union (EU). In particular, domestic semiconductor companies repeatedly requested the government's continuous and active support for large-scale investments aimed at mid- to long-term competitiveness enhancement, such as the 120 trillion won SK Yongin Semiconductor Cluster and the 300 trillion won Samsung Yongin System Semiconductor Cluster.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho visited the SK Hynix Icheon plant in Icheon, Gyeonggi Province, on the 27th, touring the semiconductor production site and listening to explanations from officials.

In response, Deputy Prime Minister Choo said, "The government has significantly increased investment tax credits related to national strategic technologies such as semiconductors and reintroduced temporary investment tax credits for the first time in 12 years," adding, "This year, we are supporting policy financing worth 2.8 trillion won in the semiconductor sector, and we will continue to provide maximum support through policy financing next year as well."

The government explained that it is also actively supporting next-generation semiconductor technology development and professional workforce training by expanding research and development (R&D) support related to system semiconductors and advanced packaging, and by raising the 2024 semiconductor talent development budget proposal by 20% compared to this year.

Deputy Prime Minister Choo particularly stated, "Regarding the companies' request for national funding support for the construction of a mini-fab (a research equipment facility for mass production verification of materials, parts, and equipment products) scheduled to begin construction in 2025 within the Yongin cluster, the government needs to make prompt decisions to ensure companies can smoothly execute equipment procurement contracts," and added, "We will actively consider this during the next year's main budget formulation process."

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