Samsung, SK hynix expand support for chip suppliers

Samsung Electronics Co. and SK hynix are expanding support for their semiconductor suppliers by increasing financial assistance and sharing technology.

SK hynix signed an agreement Monday with the Ministry of Trade, Industry and Resources, the Korea Trade Insurance Corp. and four commercial banks to ease financing constraints for small and midsize semiconductor materials, parts and equipment suppliers.

The four banks are KB Kookmin, Shinhan, Woori and Hana.

The agreement was signed at the company’s Yongin Semiconductor Cluster in Yongin, Gyeonggi Province, with supplier representatives also attending.

The program aims to ease financing difficulties for small and midsize semiconductor suppliers by expanding loan limits and reducing interest rates and guarantee fees.

SK hynix and commercial banks will contribute funds, while Korea Trade Insurance Corp. will provide guarantees, creating a support program worth 2 trillion won ($1.5 billion). The first guarantee certificates were presented to eligible suppliers at the event.

Participants also visited the construction site of the cluster’s first fab and the planned Trinity Fab. The facility, which will be built within the first fab site, will support the transition to mass production of semiconductor technologies.

The government, local authorities, and SK hynix will invest a combined 870 billion won in the project.

“Through financial support and the technology validation environment at Trinity Fab, we will strengthen our technological leadership alongside our partners,” said SK hynix Chief Executive Officer Kwak Noh-jung.

Samsung Electronics also held its annual technology-sharing event with the Ministry of Trade, Industry and Resources in Seoul on Monday.

The company selected 202 technologies for transfer this year and transferred 126 of them to 99 small and midsize companies. The technologies included systems for remotely controlling Internet of Things (IoT) devices, mobile robot control systems and voice data processing.

Samsung is also continuing to provide financial support to suppliers. Its Device Solutions division, which oversees semiconductors, established a mutual-growth fund in 2010 and now provides partner companies with low-interest loans through the 1.4 trillion won fund.