South Korea announced a ambitious plan to support its semiconductor chip industrywith the release of 14 trillion won (approximately US$10 billion or R$57 billion) in low-interest loans for next year, as reported by the country’s Ministry of Finance.
The financing package will be made available through state-owned banks and includes 1.8 trillion won earmarked for installing power transmission lines to support companies in a new semiconductor complex.
The Asian country, home to giants Samsung Electronics and SK Hynix, is building a mega-complex in the cities of Yongin and Pyeongtaek, south of Seoul. The project is considered the largest high-technology cluster for chip manufacturing in the world and aims to attract equipment companies and manufacturers without their own factory.
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South Korea enters the global chip fray
The government initiative comes at a crucial time for the sector. The Ministry of Finance highlighted its concern about the rapid advances in China’s semiconductor industry and the uncertainties related to the policies that may be implemented with the possible return of Donald Trump to the presidency of the United States.
The South Korean government shows concern about possible significant changes in the global commercial and industrial environment after the new American administration takes office. Among the concerns are the possible reduction of incentives for investments in the US, with changes to the Inflation Reduction Act and the Chips and Science Act.
Impact of competition
Another factor of concern is Trump’s recent statements about imposing additional tariffs. The former American president announced that, on his first day in office, he will implement a 25% tariff on all products from Mexico and Canada, in addition to an additional 10% tariff on Chinese products.
South Korea has faced challenges in specific segments of the sector, such as chip design and contract manufacturing, as well as increasing competition from Chinese companies. Samsung Electronics has already reported an impact on its third quarter results due to the increase in the supply of traditional chips by Chinese competitors.
“In response to this scenario, the government plans to mobilize all available resources and actively support companies in overcoming the sector crisis and achieving a new leap forward.“, said the ministry in a statement.
Fonte: Bloomberg
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Source: https://www.adrenaline.com.br/tech/coreia-do-sul-anuncia-pacote-de-us-10-bilhoes-em-emprestimos-para-fortalecer-setor-de-chips/
