The government decided to give preference to non-capital regions when designating new semiconductor clusters.
On the 25th, the Ministry of Trade, Industry and Resources gave advance notice of legislation for the enforcement decree and enforcement rules of the Special Act on Strengthening Competitiveness and Support for the Semiconductor Industry (Semiconductor Special Act). The enforcement decree does not include a clause excluding the capital region when designating clusters, but it gives preference to non-capital regions when designating clusters.
The government will cover at least 50% of the cost of installing infrastructure in cluster areas, and the state will cover up to 100% for critical facilities. Infrastructure includes power supply facilities, including undergrounding, water supply facilities, wastewater and waste treatment facilities, and road facilities. There is also a clause requiring that permitting procedures be handled ahead of other projects.
The enforcement decree also provides for infrastructure development and market access support to advance semiconductor foundries (contract manufacturing) and to build the back-end process ecosystem such as packaging and testing.
Support for corporations and institutions moving into the clusters will also give preference to non-capital regions. To support small and medium-sized enterprises and others, the government also plans to improve living conditions within clusters outside the capital region, including work, housing, education, medical, and cultural facilities.