South Korea Unveils $23B Chip Support Plan Amid U.S. Tariff Concerns
South Korea has announced a major support package worth 33 trillion won (about $23.25 billion) to boost its semiconductor sector, amid growing uncertainty over potential U.S. tariffs on chip imports. This announcement follows reports that former U.S. President Donald Trump may soon set tariffs on imported semiconductors, after initially exempting them from broader “reciprocal” tariffs. Trump also indicated plans to review the entire electronics supply chain, citing national security concerns.
The U.S. Department of Commerce has officially launched an investigation into the impact of semiconductor and related equipment imports on national security. In response, South Korea is stepping up efforts to shield its key industry from global disruptions.
The new funding package is about 25% larger than last year’s support and includes increased government subsidies for building underground power lines and upgrading infrastructure in high-tech industrial areas. The state will also raise its funding share for such infrastructure from 30% to 50%.
Out of 33 trillion won, chipmakers will get 20 trillion as low-interest loans between 2025 and 2027. This amount is higher than the earlier allocation of 17 trillion won. The plan also focuses on talent development, with enhanced training and research programs for Korean graduate students and new international collaboration programs to attract global talent.
South Korea, home to tech giants like Samsung Electronics and SK Hynix, heavily depends on semiconductor exports. Chip exports reached $141.9 billion in 2024, making up over 20% of the country’s total exports. The U.S. remains South Korea’s second-largest trading partner, with bilateral trade continuing to rise.
Source: CNBC
