SKorea Offers Big Loans & Tax Breaks to its Chip Industry

#SKorea #chip #industry

“Chips are the #1 export item for SKorea, accounting for nearly 20% of exports“– Paul Ebeling

Thursday, Korea said it would offer bigger tax breaks plus $883-M in loans for its chip industry.

Some 153 chip companies including global No.1 and 2 memory chip makers Samsung and SK Hynix (000660.KS) already have plans to invest a combined WON 510-T won or more between this year and Y 2030, according to the Korea Semiconductor Industry Association.

Samsung’s increased investment target, up from WON 133-T announced in Y 2019, is expected to be used for its goal to become the world’s No. 1 logic chipmaker by Y 2030. It wants to challenge bigger rivals TSMC (2330.TW) in contract chip manufacturing and Qualcomm (QCOM.O) in mobile processing chips.

Countries around the world have entered fierce competition by reorganising supply chains around their own country,” SKorean President Moon Jae-in said Thursday at Samsung’s chip site at Pyeongtaek.

“We need pre-emptive investments… to strengthen the domestic industrial ecosystem and lead the global supply chain to make this opportunity ours.”

Have a healthy day, Keep the Faith!