November 22, 2024

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The concept of SK hynix`s semiconductor cluster under construction in Yongin, Gyeonggi Province (Ministry of Trade, Investment and Energy)

Industry Minister Ahn Duk-geun said Thursday the government will proactively support the semiconductor industry, and accelerate the development of high-bandwidth memory and artificial intelligence chips to achieve the annual export target of $120 billion.

"The government will support the timely establishment of related infrastructure, secure competitive technologies, promote exports, and strengthen the ecosystem of materials, parts, equipment and fabless sectors," Ahn said during his visit to SK hynix's semiconductor cluster construction site in Yongin, 33 kilometers south of Seoul.

SK hynix is currently seeking to build four units of fabrication plants at the site with a budget of 120 trillion won ($89.5 billion) by 2046, with the groundbreaking of the first unit set to start in the first quarter of 2025.

The company plans to mainly produce DRAM and NAND flash memory chips at the cluster, which will become its flagship production hub.

During the visit, Ahn said the government plans to come up with a comprehensive strategy to have South Korean businesses take the lead in the artificial intelligence sector.

In line with these efforts, the ministry plans to launch a new department dedicated to supporting the development of the cluster, along with comprehensive support measures within this month.

The government will establish plans to enhance the competitive edge of chip equipment within the first half of the year, he added.

South Korea's chip exports have been showing signs of recovery, jumping 66.7 percent on-year to $9.94 billion in February. It marked the fourth consecutive month of growth and the sharpest increase since the 69.6 percent rise tallied in October 2017.

In 2023, semiconductor exports fell 23.7 percent on-year to $98.6 billion amid economic uncertainties and the industry's downcycle. (Yonhap)