Seoul [South Korea], October 28 (ANI): South Korean memory chipmaker SK hynix established a 2 trillion won (USD 1.5 billion) financing program alongside major commercial lenders and a state-run trade insurer to provide affordable funding for domestic semiconductor suppliers, according to a news report by The Korea Herald.
The initiative seeks to ease borrowing costs and buffer economic volatility for small and medium-sized vendors of semiconductor materials, parts, and equipment. The Industry Ministry identified the arrangement as the largest trade financing agreement of its kind involving an individual company.
Under the framework, SK hynix and four commercial lenders: Hana, KB Kookmin, Shinhan, and Woori, contributed 100 billion won (~USD 74.64 billion). The state-run Korea Trade Insurance Corporation provided credit guarantees worth up to 20 times that sum, backing as much as 2 trillion won (USD 1.5 billion) in loans. Eligible vendors secured access to larger credit facilities at preferential interest rates alongside reduced guarantee charges to support operating costs, research, and facility expansions.
Company executives, government officials, bank representatives, and vendor leadership gathered at the Yongin semiconductor cluster in Gyeonggi Province for a formal signing event, which included the issuance of the program's initial guarantee.
"Building a robust ecosystem of materials, parts and equipment suppliers is essential to securing Korea's global competitiveness in the semiconductor industry and further strengthening its standing," the news report quoted SK hynix Chief Executive Officer Kwak Noh-jung.
"Through the financing initiative and the one-stop technology validation environment provided by the Trinity Fab, we will work closely with our partners to further solidify our technological leadership in the global market," Kwak stated.
Prior to the ceremony, attendees visited the construction site of the chipmaker's first fabrication facility at the Yongin complex and the planned Trinity Fab. The Trinity Fab represents an 870 billion won (~USD 649.36 million) joint project between the firm and the government. It provides a testing ground where local vendors evaluate components and tooling under operational manufacturing conditions, resolving smaller suppliers' traditional lack of access to production-grade verification environments.
Industry Minister Kim Jung-kwan highlighted the necessity of speeding up domestic semiconductor manufacturing expansions to help manage international memory chip shortages, while noting that site safety remained essential.
"The government will actively support R&D initiatives, a new semiconductor fund and workforce training programs to build a cooperative ecosystem that allows small and midsized companies to share in the benefits of the semiconductor industry's growth," Kim said.
During subsequent discussions, vendor delegates suggested steps to stabilize component procurement lines, boost domestic technical skills, and curb reliance on foreign suppliers as worldwide sector investments expanded. (ANI)
SK hynix starts USD 1.5 billion financing program to support domestic chip suppliers
