Similar to the United States, the nation is bolstering its semiconductor sector under the CHIPS Act.
South Korea is the most recent nation to provide major support to its domestic semiconductor industry than any other such nation. Using a support package worth 19 billion dollars and 26 trillion won, it is attempting to maintain its competitiveness in comparison to countries like as the United States of America, China, and Taiwan. According to The Wall Street Journal, the nation would provide financial assistance to chipmakers through the Korea Development Bank, which is administered by the state, and will also prolong tax advantages that were scheduled to expire at the end of this year.
South Korea’s exports of semiconductors increased by 56 percent in April compared to the same month a year earlier. This increase was a result of the significant demand for chips to power artificial intelligence systems and other computer needs. Even though there is intense rivalry from companies such as Intel and Taiwan Semiconductor Manufacturing Co. (TMSC), this is the case because. SK Hynix announced that it would increase its artificial intelligence chip production capacity in South Korea by way of an additional investment of $14.6 billion, while Samsung announced that it would be replacing the chief of its semiconductor division in an effort to become more competitive.
It is possible that South Korea’s actions will assist it in keeping up with the United States, which has been working to increase the manufacturing of chips within its borders in order to lessen its dependency on imports. Manufacturers such as Intel, GlobalFoundries, and TMSC are receiving subsidies from the United States government as a result of the CHIPS Act. Samsung, which is receiving up to $6.4 billion in federal funds for a new semiconductor factory in Texas, is one of the greatest receivers of a CHIPS Act subsidy. This makes Samsung one of the largest users of a CHIPS Act reimbursement.