The National Growth Fund will provide 1.35 trillion won ($931 million) in low-interest loans to LG Display and Techwing to strengthen the high-bandwidth memory supply chain.
The Financial Services Commission said Thursday that its National Growth Fund investment review committee approved financing for two equipment investment projects aimed at securing a global lead in the display industry and strengthening competitiveness across the HBM supply chain.
LG Display plans to invest 3 trillion won to advance next-generation OLED technology at its facility in Paju, Gyeonggi Province, with 1.3 trillion won of that amount to be sourced from the Advanced Strategic Industries Fund.
"We expect this to further consolidate South Korea's global competitive edge in OLED by capturing the premium market early while simultaneously securing cost competitiveness and supply stability," a Financial Services Commission official said.
The committee also approved funding for Techwing, which is expanding a production facility for next-generation HBM-dedicated test equipment in Cheonan, South Chungcheong Province. Techwing recently applied for a 50 billion won loan from the Advanced Strategic Industries Fund.
Techwing has earned recognition for its technology in the global memory semiconductor market, supplying semiconductor test handlers to Samsung Electronics, SK hynix and others. The company also holds unrivaled expertise in the field, having secured an exclusive supply contract for inspection equipment capable of conducting full individual-chip testing of HBM units.
hyuk@heraldcorp.com
