Supply chain issues through the pandemic have interfered with shipments of everything from chili sauce to garage doors and semiconductors. But when it comes to that last item, South Korea is adopting a national strategy to encourage the growth of its domestic industry.
South Korean government officials say they want the country to become a “semiconductor superpower” — and they’re adjusting some policies in pursuit of that goal.
The Ministry of Trade, Industry and Energy is leading the plan.
A key part of it is a call for semiconductor companies to invest roughly $260 billion in a phased approach in coming years.
The country’s two biggest corporate players in the industry have indicated a willingness to take part.
The Joong Ang Daily reports that SK Hynix will spend nearly $100 billion by 2027 — while Samsung Electronics will invest nearly the same amount over a shorter period.
Education is another piece of the strategy — involving both graduate schools and industry.
Goals also include a boost in locally-sourced materials and components — from about a third now to half by 2030.
On the government side, there are some increased tax breaks, speedier approval for facility expansion, and other infrastructure support — although more details are expected in coming weeks.
The Korea Herald quotes a division chief at the Federation of the Korean Economies as welcoming the easing of regulations, but adding that the government’s tax breaks need to be bigger.