“Investment of over 200 billion won by 2022 to develop core semiconductor technology for future cars”
Hong Nam-ki, Deputy Prime Minister of Economy and Ministry of Strategy and Finance, said on the 10th, “As the supply shortage of semiconductors for vehicles worldwide is expected to continue until at least the third quarter, the public and private sectors will jointly respond to prevent disruption to finished car production.”
Deputy Prime Minister Hong said at the 6th Innovative Growth BIG3 Promotion Meeting held at the government office in Seoul on the same day, “Semiconductors for vehicles are a key component of the automobile industry, and demand is also rapidly increasing due to the transition to future vehicles. As a result, short-term supply chain improvement and market preemption “This is desperate,” he said.
For a short-term response, the government decided to provide support for overseas procurement by companies such as provision of quarantine in and out of the country, emergency support for customs administration such as simplification of customs procedures, and support for emergency discovery and performance certification of semiconductors for short-term alternative supplies.
In the mid- to long-term, it has decided to actively promote the development of core technologies and reinforcement of production capabilities, such as materials, parts, and equipment cases, in order to preoccupy the automotive semiconductor market.
First, it will invest more than 200 billion won by 2022 to develop core semiconductor technologies for future vehicles such as automotive application processors (AP).
When companies promote the expansion of foundries related to the production of automotive semiconductors, the Korea Development Bank and IBK will also actively review innovative preferential support, such as the’Industrial Structure Advancement Program,’ which provides preferential interest rates for facility and operating funds for system semiconductors.
It was decided to establish and regularize cooperation channels between demand companies such as finished cars and suppliers such as fabless and foundry, and to quickly establish an online matching platform for the development of demand-linked technology within this month.
The government is also spurring support for bio-venture companies in the early stages.
Deputy Prime Minister Hong said, “We will promptly promote related procedures such as K-Bio Lab Central’s preliminary feasibility study within this year, so that bio venture companies can move in in 2024.”
K-Bio LabCentral is a bio-startup support organization that provides joint laboratories and research equipment to founders and supports connection with venture capital (VC).
In addition, the public sector will take the lead and purchase innovative products from Big 3 companies, thereby broadening the opportunities to produce and sell new products.
To this end, the government plans to add a’detailed track linked to innovation policy’ such as Big 3 to the category Ⅲ of fast track for procurement of innovative products, which was newly established in October last year, and expand the designation of innovative products from 462 to more than 800 this year.
/yunhap news
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