The South Korean government will announce a comprehensive strategy to further boost the local semiconductor industry this year amid similar moves worldwide. 

The Ministry of Trade, Industry and Energy reported to President Moon Jae-in in an expanded meeting of economy-related ministers on Thursday that measures for the so-called K-semiconductor belt strategy will roll out in the first half of this year. 

Under the plan, the government will foster semiconductor clusters to meet the challenges from many other countries’ moves to restructure the global chip supply chain in a way that most benefits them. 

The government will encourage clusters for each key semiconductor value chain to offset vulnerable areas. 

The government will also provide more support regarding investment and deregulation so local chip companies will increase their production capacity in a timely manner. 

The government will provide added tax breaks for investment in key technologies with high technological and economic value, while expanding related support on finance and infrastructure.  

During a meeting with the government earlier, representatives of the local chip industry urged the government to provide a 50 percent tax deduction for investment regarding research and development and manufacturing facilities. 

It plans to launch more programs to encourage semiconductor specialists in their masters and doctoral degrees.  

In response to the ongoing global shortage of automotive chips, the government plans to encourage an alliance between auto and chip industries and will help develop related technologies over the long-haul. 

The ministry, meanwhile, will also announce a set of measures to develop the local electric automobile battery industry in the first half of the year.