South Korea has unveiled a $19 billion stimulus package to support its chip manufacturing sector, Bloomberg reports, UNN writes.
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According to the publication, this decision is good for Samsung Electronics Co. and SK Hynix Inc. as they try to stay ahead in an increasingly competitive industry.
The 26 trillion won program includes 17 trillion won in financial support for certain investments, as well as tax breaks, according to a statement from the presidential office. The total amount is more than double the 10 trillion won that Finance Minister Choi Sang-mok proposed less than two weeks ago.
Amid the news, Samsung and SK Hynix shares closed up about 1%.
The record program follows calls for support for the local chip industry as governments from the United States to China spend billions to attract and promote manufacturing projects from companies such as Taiwan Semiconductor Manufacturing Co. and Intel Corp
As noted, this cost increase is accelerating as tensions between Washington and Beijing threaten to hamper the supply of components critical to most modern devices and military forces.