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 rule of the Special Act on Strengthening Competitiveness and Support for the Semiconductor Industry (Semiconductor Special Act). The enforcement decree does not include a provision excluding the capital region from cluster designation, but it does give preference to non-capital regions when designating clusters.
The government will cover at least 50% of the installation costs for 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 provision requiring permitting procedures to be handled ahead of other projects.
The enforcement decree also provides for building infrastructure and supporting market access to advance semiconductor foundries (contract manufacturing) and to foster the back-end process ecosystem, including packaging and testing.
Support for corporations and institutions moving into clusters will also favor non-capital regions. To support small and midsize businesses, the government also plans to improve living conditions—such as work, housing, education, medical, and cultural facilities—within clusters located outside the capital region.