Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Deputy prime minister visits SK hynix plant
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho , second from right, looks arouond chip roduction line during his vist to SK hynix plant in Yongin, Gyeonggi Province, Wednesday. Yonhap
By Yi Whan-woo
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho visited SK hynix plant in Yongin, Gyeonggi Province, Wednesday ― a move in line with the government’s commitment to spur chip industry in the midst of its downturn.
Yongin is where the government plans to build the world’s largest semiconductor cluster, with goals of harboring five advanced chip fabrication facilities and around 150 materials, parts and fabless companies by 2042.
The minister said the government will spare no efforts to support the semiconductor industry.
In particular, he said the ministry will consider allotting budget to set up “mini fab,” a streamlined, small-scale production line for chips.
“The government is committed to boost the chip industry through tax cuts and other financial support,” he said, noting the industry is strategic and at the center of the Korean businesses.
He was referring to chips accounting for 18.9 percent of exports and 41.5 percent of the manufacturing investment in 2022.
“Significance of the chip industry will increase down the road despite the latest downturn, with emergence of artificial intelligence (AI) and accelerated digital transition,” he said.
For SK hynix, the minister viewed its plans to expand production facilities for high bandwidth memory products will “significantly contribute to securing a leading position in the next-generation semiconductor market.”
He promised to consider allocating budget for “mini fab” in 2025. The country also allocated 2.8 trillion won ($2 billion) in next year's budget to back the chip industry.