Lawmaker introduces bill to support Trinity Fab, boost semiconductor materials ecosystem

Lee Eon-ju, a Democratic Party of Korea lawmaker representing Yongin-jeong in Gyeonggi Province, said Friday she had introduced a bill to strengthen South Korea's semiconductor materials, parts and equipment ecosystem — formally titled an amendment to the Restriction of Special Taxation Act and commonly referred to as the Trinity Fab Support Special Act.

Lee said the legislation aims to remove tax barriers that discourage private companies from voluntarily contributing to Trinity Fab, a testbed facility for semiconductor materials, parts and equipment. "Under the current tax code, when private companies provide facilities, equipment or skilled personnel to Trinity Fab free of charge, they face corporate tax and value-added tax burdens that stand in the way of cooperative partnerships," she said. "We introduced this bill to lift those tax burdens that block voluntary private participation and to accelerate the verification and commercialization of materials, parts and equipment technology."

Lee added that Trinity Fab serves as critical testing infrastructure where companies can verify the performance and reliability of their products in a 12-inch wafer environment that closely mirrors actual mass production conditions. "Sustained private contributions of resources and personnel are essential if we are to raise the technological capability and stability of the domestic semiconductor supply chain through cooperation between large companies and materials, parts and equipment firms," she said.

The bill would allow private companies that make cash contributions, donate or provide rent-free leases of facilities and equipment for three or more years, or supply skilled personnel at no cost to the nonprofit entity operating Trinity Fab to deduct those costs from their taxable corporate income and receive an exemption from value-added tax.

"This bill is designed to create a virtuous cycle in which the technological and production capabilities of large companies feed into the technology verification process for materials, parts and equipment firms," Lee said. "For the success of the Yongin Semiconductor Cluster, I will see through all necessary legislation and budget measures — from infrastructure such as power and water supply to research, development and testing — while eliminating the unreasonable tax burdens on private companies."