South Korea launched a 300bn won ($230mn) semiconductor ecosystem fund on 26 June to expand the domestic semiconductor industry.
This semiconductor ecosystem fund seeks to support the scaling up of promising fabless firms and small companies by increasing the scale of project investments beyond what current funds enable. Fabless firms design and sell semiconductor chips but do not manufacture the silicon wafers, or chips. The manufacturing is typically outsourced to a plant.
The semiconductor ecosystem fund is the largest among all such existing funds in the country, the Ministry of Trade, Industry and Energy (Motie) said, and will be operated by venture capital firm Korea Growth Finance. The investment will begin this year.
"The semiconductor ecosystem fund aims to support the growth and self-reliance of fabless and small businesses that have recently been facing difficulties raising investment funds because of interest rate hikes and worsening business conditions," Motie's first vice minister Jang Young-jin said.
The government's support measures include increased investment tax credits to promote semiconductor investments, creation of a W300 trillion high-tech system semiconductor cluster, and an advanced semiconductor technology centre as a new technology test bed for promoting fabless and semiconductor parts.
The government recognises the fierce competition for leadership in the global semiconductor industry, Jang said, adding that the government "is doing its best to provide support so South Korea does not lag behind competitors".
