SEOUL: The South Korean industry ministry said on Tuesday it signed a memorandum of understanding (MOU) with Samsung Electronics, SK hynix and other chip firms to cooperate on technology development for advanced semiconductor packaging.

Under the MOU, the government and chipmakers agreed to work together to secure leading technologies in advanced semiconductor packaging and to nurture companies in the final steps of semiconductor manufacturing, according to the Ministry of Trade, Industry and Energy.

The agreement was signed by the two South Korean chip giants, as well as LG Chem Ltd., several outsourced semiconductor assembly and test firms and fabless companies, reports Yonhap news agency.

The South Korean government is pushing for new research and development projects in the advanced packaging field and the system semiconductor sector to lead the global market.

Advanced packaging requires state-of-the-art technologies, and it is gaining momentum as the next technological breakthrough in line with the growing demand for multifunctional devices.