South Korea unveils $23B semiconductor support package
The move comes amid growing uncertainty in the global semiconductor sector following US President Donald Trump’s changing tariff policies and the escalating trade war between the US and China.
South Korea has ramped up its support package for the country’s critical semiconductor industry to 33 trillion won (about USD 23.25 billion), a quarter higher from the 26 trillion won package unveiled in 2024, according to a Reuters report.
The move comes amid growing uncertainty in the global semiconductor sector and the chip supply chain following US President Donald Trump’s changing tariff policies and the escalating trade war between the world’s two largest economies, the US and China.
Trump said he would be announcing new tariff rates on imported semiconductors soon, after initially exempting them from his “reciprocal” tariffs. He has also vowed to investigate the “whole electronics supply chain” citing national security grounds.
The Trump administration is kicking off investigations into imports of pharmaceuticals and semiconductors as it attempts to impose tariffs on both sectors on national security grounds, notices posted to the Federal Register showed, according to the Guardian.
South Korea is home to leading global chipmakers like Samsung Electronics and SK Hynix, and semiconductors are a major export of the country.
A total of 20 trillion won of low-interest loans to semiconductor firms will now be offered between 2025 and 2027, up from the current 17 trillion won, according to a report by CNBC.
Other steps taken by the South Korean government include introducing training and research programs for students along with joint research programs for foreign talent.
In 2024, South Korea’s exports of semiconductors stood at USD 141.9 billion, about 21% of the country’s total exports, the CNBC report said, quoting government data.