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 website of the Ministry of Commerce pointed out that South Korea’s “NEWSIS” reported on February 25 that South Korean Deputy Prime Minister and Minister of Planning and Finance Hong Nanji discussed “Accelerating the Promotion of Private Investment and Strengthening in the Field of System Semiconductors” at the 5th Innovation Growth BIG3 Promotion Conference on the 25th. Investment Guarantee Scheme.
△ Ministry of Commerce website
Deputy Prime Minister Hong emphasized that in terms of policy support such as infrastructure design and construction, research and development (R&D), due to factors such as uncertainty and financial burden, semiconductor companies such as materials, components, and equipment have a negative attitude towards expanding investment. The semiconductor field is the core element of the industrial ecosystem. In order to expand private investment, it is necessary to mobilize government assistance such as funds, guarantees, and administration.
Hong Nanji said that in order to support the growth of system semiconductors, it is planned to support a total of 650 billion won, including 100 billion won for the system semiconductor mutual growth fund, 200 billion won for the growth fund, 250 billion won for the DNA+Big3 fund, and 100 billion won for the semiconductor fund such as materials, parts, and equipment. The above funds are planned to raise a total of 280 billion won during the year.
In addition, in order to support private investment, a large-scale investment will be made in the “Yongin” area to establish a Yongin semiconductor cluster, and the relevant approval procedures are expected to be completed within March.
U.S. seeks $37 billion in grants to boost chip manufacturing
In addition, CCTV Finance quoted a Reuters report that U.S. President Biden signed an executive order on the 24th to conduct a wide-ranging review of supply chains in key industries, including the semiconductor industry. The executive order calls for an immediate 100-day review of supply chains in four areas: rare earth elements, electric vehicle batteries, pharmaceuticals and semiconductors.
△ CCTV Finance “First Time” column video
The chip shortage has forced some automakers to slash production and even shut factories in the U.S. and overseas. Ford Motor Co said its car production will fall by more than 20% in the first quarter of this year due to a lack of chips. General Motors was also forced to cut output at plants in the U.S., Canada and Mexico.
US President Biden said that recently, we have seen a shortage of chips, like the chip in this computer in my hand, you can hardly see it, it is called semiconductor. It’s also led to the suspension of car production, which has led to fewer hours of work in the United States.
The Financial Associated Press reported that Biden said: “I will instruct senior officials in this administration to work with industry leaders to find a solution to the semiconductor shortage… Congress has approved a bill, but they still need $37 billion to Make sure we have that capability. I’ll push that too.”
It is understood that in early February this year, some US chip manufacturers urged President Biden to provide a large amount of funds to support “semiconductor manufacturing”.