3 weeks ago
South Korea to launch $3.5B chip fund, speed semiconductor hubs
South Korea is a country that makes a lot of the computer chips used in phones, computers, and robots.
The new president of South Korea wants to make even more chips.
He thinks the world will need many more chips soon, especially for computers that use artificial intelligence.
So his government is creating a special money fund worth 5 trillion won, which is more than three and a half billion dollars.
That money will help small companies that make chip parts, tools, and materials.
Big companies like Samsung Electronics and SK Hynix are also planning to spend more than 576 billion dollars on new chip factories.
The government also wants to build new areas for chip-making in places like Gwangju and Yongin.
To do that, they may need to move an air base in Gwangju and build more power and water supplies.
They are also asking for a new law to make building faster.
South Korea is getting ready to build lots more computer chips in the next few years.
South Korea will launch a 5 trillion won ($3.52 billion) semiconductor fund for chip materials, parts, equipment and fabless companies.
The plan was announced by Presidential Chief of Staff Kang Hoon-sik after a meeting chaired by President Lee Jae Myung on Monday.
Samsung Electronics and SK Hynix, with suppliers and local governments, are expected to invest more than $576 billion in new chip projects under the June megaproject initiative.
The government will provide 5 trillion won in trade finance and a 10-year, 1 trillion won programme supporting cooperation between large companies and smaller suppliers.
President Lee urged the Defence Ministry to relocate a military air base in Gwangju by mid-2028 and sought passage of a Mega Special Zone Act at parliament this year.
- Who
- President Lee Jae Myung and Presidential Chief of Staff Kang Hoon-sik, along with Samsung Electronics and SK Hynix
- What
- South Korea will launch a 5 trillion won ($3.52 billion) semiconductor fund and accelerate development of new chip manufacturing hubs
- Where
- Seoul, South Korea; new semiconductor hubs planned for the Gwangju-South Jeolla region and Yongin
- When
- Announced at a meeting chaired by President Lee on Monday, Aug 10
- Why
- To expand semiconductor production capacity to meet demand driven by artificial intelligence, as existing bases around Yongin and Pyeongtaek are deemed insufficient
Key facts
- Semiconductor fund
- 5 trillion won (about $3.52 billion)
- Fund focus
- Chip materials, parts, equipment and fabless companies
- Total planned chip investment
- More than $576 billion from Samsung Electronics, SK Hynix, suppliers and local governments
- Trade finance for suppliers
- 5 trillion won
- Large company-supplier cooperation programme
- 1 trillion won over 10 years
- Water supply target (Gwangju-South Jeolla)
- 650,000 metric tons daily by 2030
- Electricity supply target (Yongin cluster)
- 14.7 gigawatts by 2041
- Gwangju military air base relocation
- Urged by mid-2028; relocation and dispersal planned by second half of 2028
Quotes
Presidential Chief of Staff Kang Hoon‑sik
Official from the South Korean presidential office who briefed on the semiconductor fund
“The government will create a new semiconductor fund worth about 5 trillion won focused on promising materials, parts and equipment firms and fabless companies.”
theprint.in
Sources
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