Announcement of measures to respond to short-term supply and demand and strengthen mid- to long-term competitiveness
A plan is being promoted to provide corona 19 vaccination with exemption from self-isolation at the time of entry and exit for businessmen departing for the procurement of semiconductors for vehicles.
On the 10th, the government held the 6th Innovation Growth Big 3 Promotion Meeting at the Seoul Government Building on the 10th, and jointly announced a’strategy to respond to short-term supply and demand of semiconductors for vehicles and strengthen industrial capacity’ containing these details.
This is a more concrete plan from the’Future Vehicle-Semiconductor Solidarity Cooperation Council’ launched on the 4th.
In recent years, domestic and overseas automakers are disrupting the production of finished cars due to unstable supply and demand for vehicle semiconductors.
The supply of semiconductors for vehicles is driven by a faster-than-expected recovery in demand for automobiles and excess demand across semiconductors.
The global automotive semiconductor market is worth $38 billion, leading several global companies such as NXP and Infineon.
The domestic automobile industry is dependent on 98% of vehicle semiconductors abroad.
The government said that the disruption in supply and demand for automotive semiconductors will continue until at least the third quarter, and that it is conducting consultations with major countries, overseas semiconductor companies, and associations using public-private cooperation channels to improve the short-term supply and demand situation.
An official from the Ministry of Industry said, “We are also in discussions with Taiwan, which is consigning production of semiconductors for a large number of vehicles.”
The government plans to support rapid customs clearance for semiconductor parts for vehicles to prevent disruption in automobile production, and if necessary, apply emergency support systems such as rapid customs clearance for raw and subsidiary materials and special air freight rates.
For businessmen entering and leaving the country to procure semiconductors for vehicles, a rapid examination for exemption from self-isolation will be promoted, and corona 19 vaccination will also be promoted.
It is also planning to provide emergency support for the performance evaluation of semiconductor parts and modules for vehicles developed by domestic companies to enable replacement supply in a short period of time.
As a mid- to long-term countermeasure, it was decided to provide KRW 24.7 billion by 2022 for core semiconductor technology development (R&D) for future vehicles.
A plan to support the conversion and remodeling of existing non-vehicle semiconductors into vehicles is also under consideration.
Support for the production of prototypes to examine the possibility of mass production of automotive semiconductors will also be strengthened.
An official from the Ministry of Industry said, “We plan to carry out follow-up measures without a hitch so that solidarity and cooperation between domestic automobile and semiconductor companies are actively progressing in order to become self-sufficient in vehicle semiconductors.”
/yunhap news