SK hynix pledges W2tr to bolster semiconductor materials, parts and equipment supply chain

SK hynix announced Monday it will provide 2 trillion won ($1.49 billion) in financial support to semiconductor materials, parts and equipment companies, joining hands with the government, Korea Trade Insurance Corporation and four major commercial banks.

The chipmaker held a signing ceremony for the "export supply chain guarantee" program and presented the first guarantee certificate at the SK hynix Yongin Cluster promotional center inside the Yongin general industrial complex in Gyeonggi Province.

The ceremony was attended by SK hynix President and CEO Kwak Noh-jung, Trade, Industry and Energy Minister Kim Jung-kwan, officials from Korea Trade Insurance Corporation, representatives of KB Kookmin, Shinhan, Woori and Hana banks, and executives from materials, parts and equipment partner companies.

The newly launched export supply chain guarantee program was designed to ease financing difficulties facing small and mid-sized semiconductor materials, parts and equipment firms struggling with high interest rates and a global economic slowdown. Under the structure, SK hynix and the commercial banks contribute funds, which Korea Trade Insurance Corporation then guarantees. Total support will reach 2 trillion won.

Through the program, partner companies will be able to access higher loan limits and preferential interest rates. They will also see a significant reduction in guarantee fees incurred during the loan process. The first guarantee certificate was presented to eligible partner companies at Monday's ceremony.

Before the signing, attendees toured the construction site of the first fabrication plant at the SK hynix Yongin Semiconductor Cluster and the Trinity Fab project site. Trinity Fab is an advanced, mass-production-linked fabrication facility being built inside the first Yongin fab through a combined investment of 870 billion won by the central government, local authorities and SK hynix. Construction began in early last year, with operations targeted for May next year.

Trinity Fab is intended to serve as a key hub for strengthening the technological competitiveness of materials, parts and equipment companies. Domestic small and mid-sized firms in the sector have long struggled to commercialize new technologies and products because testing them in an actual semiconductor production environment has been difficult. Trinity Fab will provide a setting where such technologies and products can be evaluated and verified before being deployed in full-scale production.

"Building a robust materials, parts and equipment ecosystem is essential to securing the global competitiveness of South Korea's semiconductor industry at the national level and further strengthening the standing of K-semiconductors," Kwak said. "Through the export supply chain fund and the one-stop technology verification environment that Trinity Fab will provide, we will work together with our partners to further consolidate our technology leadership in the global semiconductor market."