The South Korean government pledged administrative support to back Samsung Electronics Co.’s initiative to reinforce system chip power as big as its global dominance in memory through capex of 133 trillion won ($120 billion) over the next 10 years.

The government will speed up deregulations and administrative procedures to facilitate the facility investment.

It will expedite 650 billion won funds and policy financing to enhance chip supply chain through promotion of materials and equipment suppliers.

The government announced the supportive measures for growth of system semiconductor business on Thursday.

“Any trouble and difficulty in private investment will be eased soon through active communication between departments to help companies fast respond to changing market conditions” said an official from the industry ministry.

The government will sponsor a total of 650 billion won funds pooled from the private sector, of which 280 billion won will be newly created, for the chip industry.

The 100 billion won fund devoted to system chips industry will invest 40-50 billion won and arrange a 50 billion won worth sub-fund.

Under the 200 billion won fund for growth of the chip industry, a 30 billion won sub-fund will be newly arranged for merger and acquisition projects.

Another 100 billion won will be invested to aid small- and mid-sized firms in the chip materials, components and equipment business.

State lenders will offer various loans and guarantee programs to boost investment in chip design and production facilities.

By Pulse

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