South Korea’s ruling party is seeking to make it easier for chipmaker SK Hynix to set up ventures to build factories with outside investors. This move follows a government push to position the country as an AI powerhouse.
Proposed Amendment
Members of President Lee Jae Myung’s Democratic Party of Korea have proposed amending a law pertaining to “strategic industries with cutting-edge technologies” that currently forbids a subsidiary of a subsidiary from such a move. If passed, chipmaker SK Hynix will be able to attract outside capital for its new fabs if it retains a stake of at least 50% in such a joint venture.
The government has outlined projects that aim to build new semiconductor production sites in the country’s southwest. SK Hynix and Samsung Electronics have pledged to invest 400 trillion won ($268 billion) each.
The proposed amendment would also require any new venture to have its headquarters or main office outside the greater Seoul area, in line with government efforts to stimulate regional economies.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
