President Yoon vows full support for semiconductor companies

Yoon and Chey Tae-won, the Chairman of SK Inc., at the SK siltron semiconductor chip wafer supplier in Gumi, Gyeongbuk [Photo by Lee Seung-hwan]

President Yoon Suk-yeol Wednesday emphasized that the government will spare no effort to support semiconductor companies that make bold investments, repeating his earlier pledge of improving the business investment environment through various policies, including large-scale tax benefits.

His remarks came during a signing ceremony for investment by SK siltron Co., a semiconductor chip wafer supplier in Gumi, Gyeongbuk Province. The company announced it will spend 1.23 trillion won ($1 billion) between 2024 and 2026 to build a new wafer production facility in the city.

“The semiconductor industry is the backbone of our economy and a national security asset that accounts for 20 percent of the country’s exports, but it is also true that the conditions surrounding the local semiconductor industry are not favorable,” he said.

“We need to preemptively respond to falling memory chip prices and weakening demand in the economic slowdown, while putting more effort into localizing materials, parts and equipment,” Yoon said.

“Our competitors are threatening our semiconductor industry by using all means such as import regulations, subsidies and tax benefits. Our government and companies must work together to overcome this,” he added.

SK siltron is the only Korean company that produces wafers for semiconductor manufacturers. It commands the third largest market share for wafers. The company’s latest investment is expected to create about 1,000 jobs.