The "Special Law on Strengthening and Supporting the Semiconductor Industry" took effect on August 11, establishing a legal framework to support domestic semiconductor investment and infrastructure development. The semiconductor industry believes that the speed of implementing key infrastructure, such as power and water supply, will be crucial for future competitiveness.
On the same day, the Korea Semiconductor Industry Association issued a statement welcoming the law's implementation, stating, "We expect it to serve as an important institutional foundation for expanding our companies' investments and innovating the industrial ecosystem." With the rapid increase in demand for advanced semiconductors driven by AI proliferation, the importance of policy support has grown as domestic companies pursue large-scale investment plans.
The association particularly emphasized the need for swift execution of follow-up policies. Large semiconductor production facilities require not only factory construction but also a stable supply of power and industrial water. As investments in major semiconductor clusters, such as in Yongin, ramp up, there is a growing demand for infrastructure development schedules to keep pace with production facility investments.
The special law allows the national and local governments to prioritize or exempt the costs of infrastructure for semiconductor clusters, including power, water, and road networks, and mandates the establishment of a separate special account for enhancing semiconductor industry competitiveness until the end of 2036.
It also includes provisions to prioritize or exempt preliminary feasibility studies for semiconductor cluster infrastructure projects. Additionally, it establishes a system for companies to request regulatory improvements during the cluster project process and provides a basis for supporting research and development for small and medium-sized semiconductor enterprises.
Industry insiders believe that the implementation of the special law could broaden the scope of support from individual company investments to the entire ecosystem. They emphasize the importance of creating a foundation for the growth of not only memory but also system semiconductors, advanced packaging, and materials, components, and equipment companies.
Moreover, the significance of the special law is heightened by the fact that global semiconductor competition can no longer be determined solely by a company's technological capabilities. As countries enhance subsidies, tax incentives, and infrastructure support to attract domestic production facilities, the speed of factory construction and investment burdens have become integral to national competitiveness. The special law stipulates that the government must establish a basic plan for competitiveness enhancement every five years and prepare annual implementation plans.
The Korea Semiconductor Industry Association stated, "It is crucial that investment support, infrastructure development for power and water, and follow-up support policies are implemented swiftly and consistently so that the special law leads to tangible results in the field. We will act as a bridge between the government and the industry to ensure that the voices from the industrial sector translate into policy."
* This article has been translated by AI.
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