The National Growth Fund will provide a total of 1.35 trillion won ($1.3 billion) to support LG Display's next-generation organic light-emitting diode (OLED) facility investment and Techwing's expansion of high-bandwidth memory (HBM) testing equipment production facilities.
The Financial Services Commission announced on July 30 that it approved funding for two facility investment projects aimed at strengthening the competitiveness of the display and semiconductor supply chains.
First, the fund will support LG Display with a low-interest loan of 1.3 trillion won for its OLED technology advancement facility investment, which is estimated to cost around 3 trillion won. LG Display plans to finance 1.5 trillion won of the total investment through its own resources, while the remaining 1.5 trillion won will come from the Advanced Strategic Industry Fund and loans from private banks.
This investment aims to establish a production base for next-generation OLED products, such as low-power and high-brightness panels, amid intensifying global competition in the OLED market, particularly from Chinese companies. The goal is to maintain the technological competitiveness of premium products and strengthen the domestic supply chain for key materials and components.
Techwing, a semiconductor equipment company based in Cheonan, Chungcheongnam-do, will receive a low-interest loan of 50 billion won. Techwing plans to invest a total of 91.6 billion won to expand its production facility for next-generation HBM testing equipment.
Techwing supplies semiconductor test handlers to companies like Samsung Electronics and SK Hynix and also produces equipment for testing individual HBM chips. The Financial Services Commission expects that this support will enhance the domestic testing equipment supply capacity in response to the expansion of HBM production.
Including these two projects, the National Growth Fund has approved or completed fundraising for a total of 24 projects worth 16.3 trillion won from January to July this year, with local investments accounting for 42.4% of the total.
* This article has been translated by AI.
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