The government will significantly expand support for the semiconductor industry to 33 trillion won and invest more than 4 trillion won by 2026.

On the 15th, the government held a meeting of economic ministers and a meeting of ministers related to strengthening industrial competitiveness, and announced a plan to strengthen fiscal investment to secure global semiconductor competitiveness.

Accordingly, the government will expand the scale of investment in the semiconductor sector from the existing 26 trillion won to 33 trillion won in order to resolve the difficulties faced by domestic companies in the global semiconductor competition.

This plan consists of four key tasks: expanding infrastructure, supporting investment in materials, parts, and equipment (SMEs), developing next-generation semiconductors, and securing excellent talent.

First, the government will strengthen infrastructure construction to create a semiconductor cluster.

The government will provide 70% of the cost of burying transmission lines in the Yongin-Pyeongtaek semiconductor cluster to ease the burden on companies, and the limit on infrastructure support for large-scale clusters (investment scale of KRW 100 trillion or more) will be expanded from the existing KRW 50 billion to KRW 100 billion.

In addition, we plan to increase the infrastructure support ratio for advanced specialized complexes (advanced special complexes) to 30-50% to establish a stable industrial base.

Strengthening the supply chain of national advanced strategic industries (semiconductors, displays, secondary batteries, bio, etc.) In order to do this, we are introducing a new investment subsidy for small and medium-sized enterprises. When small and medium-sized enterprises make new investments in location and facilities, we will provide support of 30-50% (up to 20 billion won per company).

In addition, we plan to expand financial investment in the semiconductor sector from the existing 17 trillion won to 20 trillion won, raise the technology guarantee ratio for small and medium-sized enterprises from the existing 85% to over 95%, and increase the investment tax credit rate by 5 percentage points to support the activation of research and development and facility investment.

We will expand the installation of equipment within public infrastructure so that fabless companies can jointly utilize expensive AI semiconductor demonstration equipment.