South Korea has designated HBM as a national strategic technology, and companies can receive up to 50% tax reduction
Recently, the South Korean Ministry of Planning and Finance announced the draft of the Follow up Implementation Order for the 2023 Tax Law Amendment, designating high bandwidth memory (HBM), mainly used in the field of artificial intelligence (AI), as a national strategic technology.
The content points out that in the future, small and medium-sized enterprises will be able to receive 40% to 50% tax credits for research and development expenses related to HBM, and large and medium-sized enterprises will be able to receive 30% to 40% tax credits.
HBM is a high bandwidth memory technology that can provide higher data transmission speed and bandwidth, and is widely used in fields such as artificial intelligence and data centers.
It is reported that in order to catch up with the recovery trend of the semiconductor industry, major semiconductor manufacturers in South Korea are conducting technological research and product development for HBM technology. Samsung Electronics plans to mass produce DRAM based on CXL technology in 2024. At the same time, SK Hailitu also plans to mass produce a new generation of HBM products in the first half of 2024, and plans to double its HBM production capacity in 2024.
The bill also states that the tax credit rate for defense industry research and development (R&D) will also increase. Specifically, three technologies, including gas turbines and other propulsion systems, military satellite systems, and manned and unmanned composite systems, are designated as new growth source technologies, and a higher deduction ratio is implemented than general research and development. Large and medium-sized enterprises can receive 20% to 30% tax credits, while small and medium-sized enterprises can receive 3% to 40% tax credits.
HBM is a high bandwidth memory technology that can provide higher data transmission speed and bandwidth, and is widely used in fields such as artificial intelligence and data centers.
It is reported that in order to catch up with the recovery trend of the semiconductor industry, major semiconductor manufacturers in South Korea are conducting technological research and product development for HBM technology. Samsung Electronics plans to mass produce DRAM based on CXL technology in 2024. At the same time, SK Hailitu also plans to mass produce a new generation of HBM products in the first half of 2024, and plans to double its HBM production capacity in 2024.
The bill also states that the tax credit rate for defense industry research and development (R&D) will also increase. Specifically, three technologies, including gas turbines and other propulsion systems, military satellite systems, and manned and unmanned composite systems, are designated as new growth source technologies, and a higher deduction ratio is implemented than general research and development. Large and medium-sized enterprises can receive 20% to 30% tax credits, while small and medium-sized enterprises can receive 3% to 40% tax credits.