‘Intensive investment of more than 200 billion won by 2022’
Promote expansion of foundries related to automotive semiconductor production
Innovative preferential support should also be actively reviewed.
On the 10th, Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, announced on the 10th that “We will focus more than 200 billion won on the development of core semiconductor technologies for future vehicles such as application processors (AP) for vehicles by 2022.”
Deputy Prime Minister Hong said at the 6th Innovation Growth BIG3 Promotion Meeting held at the government office in Seoul on the same day, “To dominate the automotive semiconductor market in the mid- to long-term, core technology development and production capability enhancement, as in the case of the small manager (materials, parts, equipment). I will actively promote it,” he said.
He announced that “when a company promotes the expansion of foundries related to the production of automotive semiconductors, it will also actively review innovative preferential support such as industrial structure enhancement programs.” The Industrial Structure Advancement Program refers to a policy in which the Korea Development Bank and IBK provide facility operation funds worth KRW 10 trillion from 2019 to this year.
He also said, “We will establish and regularize cooperation channels between demand companies such as finished cars and suppliers such as fabless and foundry, and quickly establish an online matching platform for demand-linked technology development within March.”
Deputy Prime Minister Hong said, “The intensification of the supply shortage of semiconductors for vehicles that depend mostly on overseas imports has a significant impact on the production of finished cars.” Along with the solution, the mid- to long-term supply chain improvement and market preoccupation are urgent,” he emphasized.
He suggested that as a short-term emergency response plan, “the global shortage of automotive semiconductor supply is expected to continue until at least three quarters, so we will respond with the private sector to ensure that there is no disruption in the production of finished vehicles.”
In this regard, “The finished car industry is actively seeking cooperation with overseas parts companies, and the government supports companies’ overseas procurement such as providing entry and exit quarantine convenience, emergency support for customs administration such as simplification of customs procedures, and emergency discovery and performance of semiconductor semiconductors for short-term alternative supplies. We will support authentication, etc.”
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