The National Assembly on Thursday passed a bill to support the country's semiconductor industry.

The so-called K-Chips Act stipulates expanding the tax credit rate for companies that make facility investments in national strategic industries, including semiconductors, secondary batteries, displays, vaccines and future cars.

Under the revision, the tax deduction rate for conglomerates will increase to 15 percent from the current eight percent, while the rate for small and medium-sized businesses will rise to 25 percent from 16 percent.

An additional ten percent in tax deduction will be offered only for this year for incremental investments compared with the average of the previous three years.