South Korea has plan to encourage chip firms into logic

South Korea has plan to encourage chip firms into logic

Business news |
The South Korean government has said it plans to expand investment and tax incentives for its domestic industry to foster non-memory chip manufacturing, according to the Indo-Asian News Service (IANS).
By Peter Clarke


South Korea is a large exporter of memory chips but its automotive companies, like many others around world at present, are suffering from a lack of supply of components.

“To cope with the supply shortages in the automotive chips, we plan to focus on expanding support for the 8-inch wafer foundry industry,” IANS reported incoming industry minister Moon Sung-wook saying during a visit to Silicon Mitus, a local fabless chip company.

South Korea is home to Samsung and SK Hynix, market leaders in DRAM and flash memory manufacturing. Samsung is also a foundry supplier of leading-edge logic chips. However, relatively few South Korean chip companies make logic chips.

Finance Minister Hong Nam-ki has also said the government is studying ways to increase tax benefits and policy support for the semiconductor industry to help local chipmakers sharpen their competitive edges, according to IANS.

The South Korea government plans to unveil a “K-semiconductor” plan in the 1H21, the report added.

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