The government will provide up to 100% funding for the costs associated with the establishment and operation of semiconductor cluster infrastructure. Details regarding the formation and operation of the Semiconductor Strengthening Special Committee, the designation process for clusters, and workforce training have also been finalized.
The Ministry of Trade, Industry and Energy announced on August 4 that the enforcement decree of the Semiconductor Special Act, which includes these provisions, was approved during a Cabinet meeting. This decree elaborates on the provisions delegated by the Semiconductor Special Act, enacted on February 10.
The special committee, chaired by the President, will include senior officials from relevant ministries such as the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance, and the Ministry of Science and ICT. Additionally, experts with extensive experience in the semiconductor industry from the private sector, academia, and research institutions will be appointed as members.
The committee will review key policies, including the basic and implementation plans for enhancing the competitiveness of the semiconductor industry. The Ministry of Trade, Industry and Energy expects this will systematically implement core policy tasks related to semiconductors and secure national policy momentum.
The designation process for semiconductor clusters has also been clarified. When applying for cluster designation, applicants must submit a development plan that includes the basic goals, direction of development, name, location, area, current status of the regional semiconductor industry and infrastructure, and plans for workforce training and research foundation. The enforcement decree prioritizes regions outside the capital area to reflect local industrial conditions and characteristics, contributing to the creation of a semiconductor ecosystem and balanced national development.
Funding for industrial infrastructure has also been established. The costs for establishing and operating the necessary industrial infrastructure for the cluster can be covered by the national and local governments, ranging from 50% to 100% of the total project cost. In particular, full funding will be available for facilities that contribute to redundancy, supply chain stability, and industrial safety.
Support for workforce training is also included. Priority will be given to employment linkage and retraining for semiconductor companies and local professionals outside the capital area, and criteria and procedures for designating institutions for training semiconductor professionals have been established. Additionally, procedures for establishing basic and implementation plans, the scope of semiconductor industry statistics, and matters related to the establishment and operation of a special account for enhancing semiconductor industry competitiveness have been outlined.
The Semiconductor Special Act and its enforcement decree will take effect on November 11. Minister of Trade, Industry and Energy Kim Jeong-kwan stated, "With the legal foundation established for national support of the semiconductor industry, we will closely cooperate with relevant ministries to promptly advance key policy tasks in accordance with the law."
* This article has been translated by AI.
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