Global Semiconductor Companies Expand Production and R&D Base in South Korea Amid Tax Incentives

A leading enterprise in the global semiconductor equipment and components industry is expanding its production and research and development base in South Korea.

According to the Korean media outlet Business Korea, Applied Materials is considering setting up a research and development center in Yongin, where Samsung Electronics, SK Hynix factories, and the Panglin Group R&D center are located. Industry sources revealed that senior executives from Applied Materials plan to visit Yongin soon, after signing a memorandum of understanding with the South Korean Ministry of Trade, Industry, and Energy in July last year.

In addition, Edward Vacuum Corporation doubled its vacuum pump production capacity in South Korea in June last year. The company's vacuum pump factory in Anyang City occupies more than 80% of the total vacuum pump output for the semiconductor and display industries.

The report notes that ASML, Tokyo Electron, and other companies are also moving in the same direction. The industry is calling for the relaxation of restrictions to maximize the synergy with companies such as Samsung Electronics and SK Hynix.

Recently, the South Korean National Assembly's Planning and Finance Committee approved the "Special Act on the Semiconductor Industry" at a subcommittee meeting. Large companies in the industry will enjoy a 15% tax credit, while small companies will enjoy a 25% tax credit. The current tax credit rates are 8% and 16%, respectively.

The expansion of production and research and development base in South Korea by leading enterprises in the industry indicates a growing market in the country. Additionally, the tax incentives for companies in the semiconductor industry can create opportunities for cost savings and increased profitability.