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SEOUL, March 10 (Yonhap) – South Korea plans to invest more than 200 billion won ($ 176 million) in developing automotive chip-making technology by 2022 to expand the industry new generation vehicles, the Minister of Finance announced on Wednesday. .
Finance Minister Hong Nam-ki said the government plans to cooperate with local auto makers to find ways to alleviate the current shortage of auto chips that could last until the third quarter.
“As automotive chips are key parts of the automotive industry and demand for next-generation cars is high, there is an urgent need to address a short-term supply shortage of these chips, improve the channels supply and preempt the market, “Hong said at a meeting. with government officials on innovative growth.
The government plans to invest 75.7 billion won in related research and development projects this year, with the combined amount expected to reach 204.7 billion won over the period 2020-2022.
South Korea has defined the memoryless chip, bio-health and next-generation vehicle sectors as the “3 BIG 3” industries that it seeks to foster for job creation and focused growth. ‘innovation.
Hong said the government will focus on investing in the development of automotive application processors and other key automotive chip manufacturing technologies.
The country is considering allowing state banks to offer loans at lower rates if companies seek to expand their foundry businesses related to auto chips.
South Korea, meanwhile, is also planning to step up efforts to deal with the current global shortage of automotive chips.
Global automakers have struggled to secure the chips as the auto industry has recovered from the fallout from the COVID-19 pandemic at a faster rate than expected.
The plans include excluding businessmen from the mandatory two-week quarantine when traveling abroad to secure fleas.
The country said it has also simplified customs procedures for auto chips since February.
The global automotive chip market is expected to reach $ 67.6 billion in 2026, up from $ 38 billion in 2020, the Industry Ministry said, citing data compiled by industrial tracker IHS Markit.
South Korea is the world’s largest exporter of memory chips, but 98% of its demand for automotive chips depends on foreign sources.
The country said the shortage is expected to last for at least the third quarter and pledged to expand cooperation with its foreign partners, including those in Taiwan.