Minister Lee holds 1st Industrial Strategy Roundtable (Semiconductors)

Trade, Industry and Energy Minister Lee Chang-yang held the 1st Industrial Strategy Roundtable at SK Hynix headquarters in Gyeonggi-do on May 30 to discuss key issues, concerns, and the new regime's semiconductor industry policy directions.

On managing the roundtable, Minister Lee referred to the roundtable as a platform for realizing the Ministry's innovative policy reforms. It will serve as a communication channel between the government and enterprises where industry issues can be shared.

Following the 1st roundtable on semiconductors, the 2nd roundtable and thereon will venture into a more diverse spectrum of industries like automobiles, batteries, steel and robots. Issues raised will be reported to relevant ministries for problem-solving.

Minister Lee assessed that Korea's semiconductor industry is up against some tough challenges in terms of vulnerability to the global supply chain and heated competition from other major countries' moves toward hefty semiconductor subsidies. For instance, the U.S. is mulling a USD 52 billion funding for semiconductor production facilities and R&D, and Japan has allocated JPY 600 billion ($5.2 billion) of its fiscal 2021 supplementary budget to fund chip manufacturers. The EU has unveiled a EUR 43-billion chip act for investing in public and private semiconductor development.

Accordingly, Minister Lee asserted that "it is time Korea deploy exceptional measures in order to gain an edge over its rivals in the global chip race," and hence the reason for selecting the semiconductor industry for the 1^st Industrial Strategy Roundtable.

When asked which areas are in the most urgent need of government support, participants mentioned investment in company infrastructure, training up quality workforce, and building competitiveness of MPE (materials, parts, equipment) companies.

Increasing tax cut rates, support for essential infrastructure (power, water, etc.), and streamlining local government approval procedures to get rid of delays were also at the top of the list. The number one voiced concern was lack of trained personnel, and attendees emphasized the need for bolder government support for nurturing specialists equipped with hands-on skills.

Some called for a public-private joint committee to stimulate win-win growth and to ask for support for core MPE items R&D, so that domestic companies can also be equipped with the right technology and human resources to take on their global counterparts.

In agreement with abovementioned issues, Minister Lee stressed the importance of investment, personnel and MPE ecosystem, and how they all require undivided support from the government. He maintained that the critical issues are deregulation, tax favors, education and training support, and domestic production of core MPE items.

He mentioned the new regime's upcoming announcement of its semiconductor development strategy, and assured that the Ministry will work together with relevant ministries to incorporate the industry's concerns into their strategy

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