An institutional foundation has been established for a new leap forward in Korea's semiconductor industry.

The 'Special Act on Strengthening and Supporting the Competitiveness of the Semiconductor Industry,' aimed at systematically strengthening the competitiveness of the semiconductor industry, a national strategic industry, passed the plenary session of the National Assembly on the 29th.

Amid intensifying global competition for technological supremacy, both the industry and the government regard this as a significant turning point, given that a legal foundation has been established to comprehensively support the entire semiconductor industry.

The core of this Special Act on Semiconductors is to comprehensively support the entire supply chain, ranging from memory and system semiconductors to design, manufacturing, packaging, materials, components, and equipment.

Semiconductor support policies, which were previously scattered across individual projects and budgets, have been consolidated into a single system to enable continuous implementation under a mid-to-long-term strategy.

Under the bill, a 'Special Committee on Strengthening the Competitiveness of the Semiconductor Industry' under the President will be established, and a 'Basic Plan for Strengthening the Competitiveness of the Semiconductor Industry' will be formulated on a five-year basis.

Also, semiconductors with a 10-year term Stable financial support becomes possible through the special account.

This is expected to enhance policy consistency and execution capabilities, and enable a more rapid response to the rapidly changing global market environment.

The designation of a semiconductor cluster considering balanced regional development is also a key point.

The government and local governments plan to reduce the burden on corporate investment by supporting the construction costs of industrial infrastructure within the cluster, such as electricity, water, wastewater, and roads, and by simplifying various licensing and permit procedures.

There are also predictions that this will serve as an opportunity to expand the semiconductor industry ecosystem, which has been concentrated in the metropolitan area, to the entire country.

In addition, the law includes grounds for various support measures to underpin corporate activities, such as technology development and the establishment of demonstration centers, fostering the ecosystem for materials, parts, equipment, foundries, and system semiconductors, training specialized personnel and attracting overseas talent, and special provisions regarding regulations and licensing.

In particular, it is expected to play a role in promoting investment and research and development by domestic companies in the competition for next-generation technologies centered on AI semiconductors.

Minister of Trade, Industry and Energy Kim Jeong-kwan stated, “Semiconductors are our country’s largest export industry and a strategic asset that determines national and economic security in the AI era,” adding, “With the enactment of the special act, we will maintain and strengthen the super-gap of K-semiconductors and secure leadership in global competition.”

The industrial sector also welcomes the passage of the bill.

In a welcoming statement, the Korea Semiconductor Industry Association (KSIA) stated, “The Special Act on Semiconductors is a starting point for elevating semiconductor competitiveness to the next level in the AI era,” adding, “We look forward to its swift implementation in the industry leading to tangible results.” The association also conveyed its intention to cooperate closely with the government and actively participate in the implementation process of the law.

Lee Sang-ho, Head of the Economic and Industrial Division at the Korea Economic Association, also assessed that “this special act serves as an institutional foundation to propel the growth engine of the domestic semiconductor industry to the next level,” adding that “government financial and infrastructure support will become a key driving force in promoting large-scale corporate investment amidst the global competition for technological supremacy.” Furthermore, he called for policy consistency and continuous institutional backing.

The Special Act on Semiconductors is scheduled to be promulgated after being passed by the government and approved by the Cabinet, and will be implemented as early as the third quarter of this year.