South Korea offers tax incentives to chipmakers targeting $453 bn investment

South Korea plans to provide tax incentives and state subsidies to chipmakers to encourage them to spend $453 billion by 2030, in line with its vision to become a global powerhouse in both memory and non-memory chips.
China semiconductor industryUnder the plan dubbed the K-semiconductor blueprint, the government will also draw up a 1.5 trillion-won budget to support the development of next-generation power semiconductors and AI chips, according to the Ministry of Trade, Industry and Energy.

Another batch of 1 trillion won worth of low-interest loans will be provided to support facility investment by local chipmakers, including 8-inch wafer foundry lines. South Korea is home to leading global players including Samsung Electronics and SK Hynix.

The 510 trillion-won ($453 billion) investment plan includes 41.8 trillion won in investment estimated for 2021.

Aided by a set of supporting measures, South Korea aims to more than double its annual outbound shipments of chips to reach a whopping $200 billion in 2030 from $99.2 billion tallied in 2020, reports Yonhap news agency.

The government will designate semiconductors as a “national innovation strategy technology” and increase tax benefits to as much as six times the current level, President Moon Jae-in said.

The semiconductor sector has been the key driver of the country’s exports, taking up around 20 percent of the country’s annual outbound shipments.

Exports of chips advanced 30.2 percent on-year in April to $9.3 billion, extending their gains to 10 consecutive months.

South Korea, however, has been lagging behind global peers in terms of non-memory chips. To induce chipmakers to carry out scheduled investment plans, the country said it will offer various tax benefits and subsidies.

Latest

More like this
Related

UNISOC unveils T760 chipset in India, targeting 5G smartphone business

Semiconductor design firm UNISOC announced the launch of its...

MediaTek vs Qualcomm in 5G smartphone chip market

The latest report from Omdia has revealed the chipset...

MediaTek intros Dimensity 7300 targeting gaming and AI smartphone makers

MediaTek has introduced the Dimensity 7300 and the Dimensity 7300X...

Arm Holdings Unveils New AI-Optimized Chip Designs and Software Tools

Arm Holdings has announced the release of new chip...