SK hynix launches 2 trillion won financing program for chip suppliers

SK hynix has launched a 2 trillion won ($1.5 billion) financing program with four banks and the Korea Trade Insurance Corporation to help domestic semiconductor suppliers borrow at preferential rates, the company said Monday. A signing ceremony at the Yongin semiconductor cluster also marked issuance of the first guarantee. SK hynix and the banks will contribute 100 billion won, supporting guarantees worth up to 20 times that amount. Eligible materials, parts and equipment suppliers can obtain larger loans with lower guarantee fees to fund operations, technology development and capacity expansion. The company and government also plan an 870 billion won Trinity Fab at Yongin, where suppliers would test products under actual semiconductor manufacturing conditions. The testing facility is still planned.