South Korea is sending a record $19 billion to bolster its chip sector. This is particularly positive news for Samsung Electronics Co. and SK Hynix Inc., who are trying to lead in an increasingly competitive industry.
Bloomberg writes about it.
South Koreaʼs microchip sector promotion program includes, among other things, financial support for investment and tax incentives for manufacturers.
Samsung shares rose 1.4% in Seoul after the announcement by South Korean President Yoon Suk-yeol, while SK Hynix rose about 3%.
The record program to support manufacturers comes as the US and Chinese governments spend billions to attract and stimulate chip manufacturing projects. Governments are investing heavily as tensions between Washington and Beijing threaten to disrupt the global supply of components critical to most modern devices and military technology.
Microcircuits are used in radio electronics, medicine, aircraft construction, automobile manufacturing, and the military industry. Even the iPhone smartphone cannot be produced without it.