South Korea Launches $3.5 Billion Chip Fund to Strengthen Global Semiconductor Position
To strengthen its global semiconductor standing, South Korea plans a 5 trillion won fund for chip components, equipment, and fabless companies.
ASIA,ECONOMY
Global N Press
8/10/20261 min read
SEOUL, August 10, 2026 — South Korea will establish a 5 trillion won ($3.52 billion) semiconductor fund to support chip materials, parts, equipment companies and fabless firms as Seoul seeks to strengthen its position in the global semiconductor industry. The government will also provide another 5 trillion won in trade financing for suppliers and launch a 10-year, 1 trillion won program to promote cooperation between major chipmakers and smaller suppliers in research, testing and production. The measures are part of President Lee Jae Myung’s broader semiconductor initiative. Samsung Electronics, SK Hynix and their suppliers, together with local governments, are expected to invest more than $576 billion in new semiconductor manufacturing projects and industrial clusters under plans announced earlier this year.
The policy comes as surging investment in artificial intelligence infrastructure drives demand for advanced computing and memory chips. South Korea’s exports rose 62.8% year on year in July to $98.89 billion, with semiconductor exports jumping 179% and computer exports increasing 404%, according to preliminary trade data. The government’s latest measures are intended to expand domestic supply-chain capacity, support smaller technology companies and accelerate new chip manufacturing hubs. South Korea’s efforts could have broader implications for global semiconductor supply chains as major economies compete to secure advanced chip production and related technologies.
