Samsung, SK request gov't for more support to overcome chip shortage

SK hynix Icheon plant / Yonhap

By Kim Hyun-bin

Local semiconductor companies have requested the government for aid in order to better overcome the global chip shortage.

The Minister of Trade, Industry and Energy Sung Yun-mo hosted an event with major industry representatives from the Korea Semiconductor Industry Association (KSIA) and conglomerates officials at the Westin Chosun Hotel in Seoul, Friday to brainstorm ways to counter the global chip shortage crisis that has led to key automakers idling their plants.

Samsung Electronics President Lee Jung-bae, SK hynix CEO Lee Seok-hee and KSIA Chairman were among the officials that took part in the meeting.

The companies requested the government to give them tax breaks of up to 50 percent on the building of new manufacturing, and research and development facilities and to swiftly pass administrative procedures.

“Semiconductors are not only the country's core industry, but also a crucial sector to lead in future industries such as artificial intelligence, self-driving vehicles and bio-health sectors,” KISA Chairman Lee said.

Minister Sung plans to unveil new measures to better address the issues surrounding the industry.

Sung requested semiconductor firms to increase their investments to secure manufacturing facilities and advance more into the foundry sector to better meet the rise in global demand.

Both industry and government officials agreed that a stable supply of chips was needed to counter the global shortage and help the economy recover.