Fri. Jun 14th, 2024

South Korea allocates a record 19 billion dollars. for the production of chips

Natasha Kumar By Natasha Kumar May24,2024

South Korea allocates record $19 billion to chip production

South Korea unveiled a $19 billion stimulus package to support its microprocessor industry and boost the competitiveness of Samsung Electronics and SK Hynix.

South Korea unveiled a $19 billion stimulus package to support its chip manufacturing sector, Bloomberg reports.

Details

As the publication notes, such solution is a benefit of Samsung Electronics Co. and SK Hynix Inc. as they try to stay ahead in an increasingly competitive industry.

The 26 trillion won program includes 17 trillion won in financial support for certain investments as well as tax breaks, according to statements of the office of the president of the country. The total is more than double the 10 trillion offered by the country's Finance Minister Choi Sang Mok less than two weeks ago.

Shares of Samsung and SK Hynix closed up about 1% on the news.

The record program followed calls to support the local chip industry, as governments from the US to China spend billions to attract and promote manufacturing projects by companies such as Taiwan Semiconductor Manufacturing Co. and Intel Corp. 

These cost increases are said to be accelerating as tensions between Washington and Beijing threaten to hamper the supply of components critical to most modern devices and the military.

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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