Simtech's shares have surged over 4% following news of a 20 billion won investment support from the National Growth Fund.
As of 9:37 a.m. on June 26, the Korea Exchange reported that Simtech's stock rose by 6,000 won (4.75%) to 132,200 won compared to the previous trading day.
The increase in investor sentiment is attributed to the Financial Services Commission's approval of a low-interest loan support for Simtech during a meeting of the National Growth Fund's Fund Management Review Committee held the previous day.
This marks the first investment case since the second meeting of the Strategic Committee, the advisory body for the National Growth Fund, selected support for 'renewable energy infrastructure projects' as a second mega-project in April.
Simtech plans to invest a total of 40 billion won to expand its production line for next-generation memory semiconductor packages at its facility in Cheongju, North Chungcheong Province, with the National Growth Fund providing half of that amount, or 20 billion won.
Semiconductor package substrates are essential components that connect semiconductor chips to motherboards and protect them from external shocks, temperature, and humidity. Simtech supplies products to major companies including Samsung Electronics, SK Hynix, and Micron Technology in the United States.
The Financial Services Commission expressed optimism that this support will help meet the growing demand for high-performance memory for artificial intelligence servers and strengthen the competitiveness of the domestic semiconductor supply chain.
* This article has been translated by AI.
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