South Korea aims to bolster local chip production with $19 billion of support

South Korea is the latest country to support the native industry significantly. It is trying to stay competitive with countries such as the United States, China and Taiwan with the help of a 26 trillion won ($19 billion) bailout package. The country will extend tax breaks that expire later this year and provide financial support to chip makers through the state-run Korea Development Bank. reports.

South Korea saw its semiconductor exports jump 56 percent in April from a year earlier, amid strong demand for chips to power artificial intelligence systems and other computing needs. This is Intel and Taiwan Semiconductor Manufacturing Co. Despite fierce competition from companies like (TMSC). SK Hynix said it would increase its artificial intelligence chip manufacturing capacity in South Korea with an additional $14.6 billion in investment, while Samsung replaced the leader of its semiconductor division to try to become more competitive.

South Korea’s moves could help it keep pace with the U.S., which is trying to boost domestic chip production to reduce its reliance on imports. Through the CHIPS Act, it subsidizes producers such as the United States , and . As it is, one of the largest recipients of the CHIPS Act subsidy It is receiving up to $6.4 billion in federal funding for a new semiconductor plant in Texas.

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