New Delhi

South Korea is gearing up to roll out a comprehensive support package exceeding $7 billion aimed at strengthening investments and research in the semiconductor sector, as the nation increases its efforts to gain a competitive edge in the global chip market.

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Finance Minister Choi Sang-mok revealed the government's ambitious plans on Sunday, highlighting the importance of securing a leading position in the semiconductor industry.

The support package, valued at over 10 trillion won, will target various segments of the semiconductor supply chain, including chip materials, equipment manufacturers, and fabless companies.

Details of the initiative, which may encompass policy loans and the establishment of a new fund backed by both public and private financial institutions, are expected to be unveiled soon.

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In addition to financial incentives, South Korea is advancing its semiconductor infrastructure by constructing a mega chip cluster in Yongin, located south of the capital city, Seoul.

Positioned as the world's largest high-tech complex of its kind, this initiative underlines the country’s push towards fostering innovation and competitiveness in the semiconductor domain.

President Yoon Suk Yeol has articulated a steadfast assurance to supporting the semiconductor industry, characterising it as a pivotal battleground where South Korea aims to emerge victorious.

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To incentivise investments in chip-related ventures, the government is poised to introduce tax benefits and other strategic measures aimed at propelling the nation to the forefront of the global chip market.

The proposed support package represents a concerted effort by South Korea to fortify its semiconductor sector amidst escalating competition and geopolitical dynamics.

By leveraging financial resources, technological prowess, and strategic initiatives, the nation seeks to solidify its position as a key player in the ever-evolving semiconductor landscape.

(With inputs from Reuters)