Home to leading memory chip makers Samsung Electronics and SK Hynix, Korea has been caught between the US and China in an escalating fight over semiconductors.
«:»South Korea ’s government plans to hike tax breaks for big chip companies’ capex to as much as 25 per cent, after President Yoon Suk Yeol called for bigger incentives to fuel the critical sector. Big companies will get a tax credit of 15 per cent on investments on manufacturing facilities, up from the planned 8 per cent under legislation passed last month, according to a finance ministry statement. Smaller companies’ capex spending will get a tax break of 25 per cent, up from 16 per cent. Any additional investment in chip-making in 2023 will get another 10 per cent tax break, the ministry said. The broadened plan, which will be proposed this month, could reduce the tax burden on companies by more than 3.
