650 billion won and 37 billion U.S. dollars, South Korea and the United States promote the development of the semiconductor industry

Latest update time：2021-09-01 22:56

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Recently, the governments of South Korea and the United States have each been promoting the development of the semiconductor industry through financial support.

South Korea raises 650 billion won to support system semiconductor fund

The Ministry of Commerce website stated that South Korea's "NEWSIS" reported on February 25 that South Korea's Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki discussed the "Plan to Accelerate Private Investment in the System Semiconductor Field and Strengthen Investment Guarantees" at the 5th Innovation Growth BIG3 Promotion Meeting on the 25th.

△ Ministry of Commerce website

Deputy Prime Minister Hong emphasized that previously, semiconductor companies such as materials, parts, and equipment had a somewhat negative attitude towards expanding investment in policy support for infrastructure design and construction, research and development (R&D) due to factors such as uncertainty and financial burden. The semiconductor field is a core element of the industrial ecosystem, and it is necessary to mobilize government assistance such as funds, guarantees, and administration to expand private investment.

Hong Nam-ki said that in order to support the growth of system semiconductors, it is planned to support a total of more than 650 billion won in funds, including a 100 billion won system semiconductor mutual development fund, a 200 billion won growth fund, a 250 billion won DNA+Big3 fund, and a 100 billion won semiconductor fund for materials, components, and equipment. It is planned to raise a total of 280 billion won this year.

In addition, in order to support private investment, large-scale investment will be made in the Yongin area to establish the Yongin Semiconductor Cluster, and the relevant approval procedures are expected to be completed within March.

U.S. seeks $37 billion in funding to boost chip manufacturing

In addition, CCTV Finance quoted a Reuters report that US President Biden signed an executive order on the 24th to conduct a wide-ranging review of the supply chains of key industries, including the semiconductor industry. The report pointed out that the executive order requires an immediate 100-day review of the supply chains in four areas: rare earth elements, electric vehicle batteries, pharmaceuticals, and semiconductors.

△ CCTV Finance "First Time" column video

It is reported that the chip shortage has forced some automakers to significantly reduce production and even close factories in the United States and overseas. Ford Motor Company of the United States said that due to the lack of chips, the company's automobile production will drop by more than 20% in the first quarter of this year. General Motors has also been forced to cut production at factories in the United States, Canada and Mexico.

US President Biden said that recently, we have seen a shortage of chips, just like the chip in this computer in my hand, you can hardly see it, it is called a semiconductor. It is also the cause of the suspension of automobile production and the reduction of working hours for Americans.

Cailian Press reported that Biden said: "I will instruct senior officials of this administration to work with industry leaders to find solutions to the semiconductor shortage... Congress has approved a bill, but they still need 37 billion US dollars to ensure that we have this capability. I will also push for this."

It is understood that in early February this year, some American chip manufacturers urged President Biden to provide a large amount of funds to support the "semiconductor manufacturing industry."

Source: Global Semiconductor Observer

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