Asia Express
South Korea to Invest US$19 Billion in Semiconductor Industry
May 24, 2024

The South Korean government recently announced a comprehensive subsidy plan amounting to 26 trillion won (approximately US$19 billion) aimed at boosting the competitiveness of Korean chipmakers in the global semiconductor industry. This investment seeks to increase South Korea's market share from the current 2% to 10%, as reported by Commercial Daily News on May 23.

Of the total 26 trillion won, around 17 trillion won (US$12.5 billion) will come from the state-run Korea Development Bank in the form of low-interest loans. The package will cover various sectors including finance, infrastructure, and R&D, with over 70% of the funding dedicated to supporting small and medium-sized enterprises (SMEs).
 
In addition to South Korea's efforts, Taiwan also plays a significant role in the semiconductor industry. According to the Market Intelligence & Consulting Institute (MIC), a division of the Institute for Information Industry (III), the Taiwanese semiconductor industry's shipment value is projected to reach approximately NT$4.17 trillion (US$135.3 billion) in 2024, reflecting a robust year-on-year increase of 13.6%.