The spread of COVID-19 is having an effect on the South Korean Government’s ambitious plan to promote South Korea’s system semiconductor industry. The deadline to submit a business plan for “2020’s first future driving force projects subjected to new support” that also include a plan to promote the system semiconductor industry has been extended for two weeks. While majority within the industry believes that the extension will not be a huge variable in carrying out the project, some believe that the deadline cannot be extended any longer.

According to the industry, Korea Evaluation Institute of Industrial Technology (KEIT) recently announced that it would extend the deadline for “2020 plan for the Industry Technology Innovation Projects”. As a result, the deadline for 13 national technology development projects has been pushed until the 31st of this month at the maximum.

The list of projects includes 2020’s first future driving force projects subjected to new support as well. This project can be largely divided into semiconductor, display, and embedded (industrial intelligent converging component) projects.

Projects related to semiconductor are the ones that are drawing the most attention they are one of follow-up measures announced after President Moon Jae-in emphasized the importance of promoting South Korea’s system semiconductor industry in April of 2019. As a result, level of expectations from representatives of the industry who have been managing their companies under a weak environment is significant.

There are 45 semiconductor-related projects such as development of next-generation system semiconductor design, device, and process technologies, development of key system semiconductor IPs (Intellectual Property), and operation of system semiconductor design support center. Total of $14.0 million (16.55 billion KRW) will be invested annually into these tasks.

However, there have been setbacks regarding running these projects as the deadline for related business plans has been changed from the 28th of February to the 13th of March due to the spread of COVID-19.

“We have decided to extend the deadline after hearing from the industry that cooperation between companies and even employees within a company has been difficult.” said a representative for Ministry of Trade, Industry and Energy (MOTIE).

As the deadline has been pushed back, evaluation and project selection period is also expected to be pushed back by two weeks. While projects need to be launched in early April after going through a month-long evaluation period in March according to the initial plan, schedules have been adjusted due to an unexpected variable.

It is also concerning that many people will have to gather at one place to evaluate business plans. Considering the fact that KEIT that is going to evaluate business plans is located in Daegu that is under a direct effect of COVID-19, there is a chance that an evaluation will take place in a different city.

While majority within the industry believes that the extension will not be a huge variable in carrying out the project, some are also expressing concerns

“We have yet to hear from the government that the starting point of projects will be pushed back.” said CEO of a system semiconductor company. “We probably do not have to worry ahead of time as the deadline to submit business plans has been pushed back.”

“We believe that this extension is an opportunity for us to reexamine business plans that we have not thought about submitting.” said a high-ranking official of a system semiconductor design company.

Some within the industry are concerned about a possibility that projects will get pushed back continuously as the COVID-19 situation does not seem to die down. Projects getting pushed back will result in less working expenses which will then cause setbacks to carrying out projects.

“The government cannot push back the deadline any longer.” said one representative for the industry. “Because there will be less working expenses as the duration gets shortened, there is a great chance that there will be financial burden on companies that will be carrying out projects.”