S. Korea to expand tax incentives, lift more regulations for chip biz

South Korea said Thursday it plans to offer more tax incentives and lift more regulations for chipmakers in line with its vision to become a global powerhouse in both memory and non-memory chips.

The country is seeking to have major research and development (R&D) projects and facility investment in the chip sector receive incentives through a law revision, according to the Ministry of Trade, Industry and Energy.

The proposed bill on expanded tax incentives and eased regulations, a follow-up measure of a new blueprint announced in May, will be submitted to the parliament by September, the ministry said.

In May, South Korea unveiled the so-called K-semiconductor blueprint, seeking to provide massive tax incentives and state subsidies to chipmakers in order to encourage them to spend a combined 510 trillion won by 2030, in line with its vision to become a global powerhouse in both memory and non-memory chips.

Through such efforts, South Korea aims to double its annual outbound shipments of chips to reach a whopping $200 billion in 2030 from $99.2 billion tallied in 2020.

Chips are a major export product for Asia's No. 4 economy, taking up roughly 20 percent of the total outbound shipments.

While South Korea is one of the leading countries in terms of memory chips, it has been lagging behind peers in the non-memory segment. Accordingly, the country has been making efforts to expand R&D projects in such areas. (Yonhap)