Korean Government To Announce Semiconductor Tax Breaks, To Compete With America
South Korea are the leaders in the global semiconductor market, and Seoul is making plans to ensure this winning streak continues, amidst a crippling components shortage.
Between them, Samsung Electronics and SK hynix control nearly 70 percent of the global memory chip market, and could now receive tax credits of 20-30 percent, plus further breaks for chip-related facility spending.
The “K-Semiconductor Belt Strategy” is expected to be announced sometime this week, and will allow Korean companies to compete with the recent 40 per cent tax breaks announced by the American Government.
Hong Nam-ki, Deputy Prime Minister For Economy, said: “The measure should be a totally different approach from current measures in order to maintain Korea’s competitive edge in the memory market and secure competitiveness in the logic chip market.”