South Korea has allocated $19 billion to develop chip production
By ForGeeks South Korea unveiled a $19 billion stimulus package aimed at boosting the chip-making sector, a boon for Samsung Electronics Co. and SK Hynix Inc. as they struggle to lead in an increasingly competitive market.
South Korea has unveiled a $19 billion stimulus package aimed at boosting the chip-making sector, a move that will be a boon for Samsung Electronics Co. and SK Hynix Inc.
The 26 trillion won program includes 17 trillion won in financial support for certain investments as well as tax incentives, the presidential office said in a statement. The total amount is more than double the 10 trillion won proposed by Finance Minister Choi Sang-mok less than two weeks ago.
The total amount is more than double the 10 trillion won proposed by Finance Minister Choi Sang-mok less than two weeks ago.
Samsung shares rebounded from earlier losses and rose 1.4 percent in Seoul after the announcement. Shares of other semiconductor companies rose in Asia amid the release of results from Nvidia Corp. SK Hynix shares extended their morning gains and rose about 3% after the news.
Shares of SK Hynix extended their morning gains and rose about 3% after the news.
The record-breaking program follows calls to support the local chip industry as governments from the U.S. to China spend billions to attract and develop manufacturing projects from companies such as Taiwan Semiconductor Manufacturing Co. and Intel Corp.
The global spending is on the rise as tensions between Washington and Beijing threaten to disrupt the global supply of components needed for most modern devices and the military.
Korea, the world’s largest maker of memory chips, has long preferred to let private conglomerates such as Samsung and SK lead investment efforts. But now the government is taking a more active role and has spearheaded plans to build a megacluster of chip plants outside Seoul.
The government is now taking a more active role and has spearheaded plans to build a megacluster of chip plants outside Seoul.
