Republic of Korea to launch $3.5bn chip fund, speed development of semiconductor hubs
Republic of Korea will launch a 5tn won ($3.52 bn) semiconductor fund targeting promising chip materials, parts, equipment and fabless companies, a presidential official said, as Seoul seeks to accele...
The Republic of Korea is set to introduce a $3.5 billion semiconductor fund aimed at bolstering the development of chip materials, components, equipment, and fabless companies, according to a presidential official. This initiative, part of President Lee Jae Myung's semiconductor megaproject, is designed to accelerate the establishment of new chip manufacturing hubs throughout the country.
The government will also allocate an additional 5 trillion won in trade finance to support suppliers, as announced during a press briefing following a meeting chaired by the president.
The measures are in line with the government's $576 billion investment in semiconductor manufacturing projects, including major fabrication facilities in the southwest region of the nation. A new semiconductor fund worth approximately 5 trillion won will be established to focus on promising firms and companies involved in materials, parts, equipment, and fabless semiconductor development, testing, and production.
Additionally, the government is planning a 10-year, 1 trillion won program to foster collaboration between large corporations and smaller suppliers throughout the semiconductor value chain.
To expedite the permitting process, environmental reviews, and infrastructure construction, the government plans to introduce a Mega Special Zone Act within the next year. The 8.3 million square meter area in Gwangju, designated as a candidate for a national industrial complex, is set to undergo relocation and temporary dispersal of military facilities by mid-2028.
The government will ensure the availability of power and water supplies on schedule for the new semiconductor projects. For the southwestern Gwangju-South Jeolla region, authorities intend to secure 650,000 metric tonnes of water daily by 2030 through the use of recycled wastewater and supplies from nearby dams. In the Yongin semiconductor cluster, the government aims to supply 14.7 gigawatts of electricity by 2041, utilizing a combination of cogeneration facilities, LNG generation, and power from other regions.
The Lee administration views expanding semiconductor production capacity as a critical component of its industrial strategy, emphasizing that existing production bases in Yongin and Pyeongtaek will be insufficient to meet the rising demand driven by artificial intelligence.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
