South Korea announces over $23 billion for chip sector as Trump tariffs on semiconductor imports loom

South Korea recently unveiled a support package worth 33 trillion won ($23.25 billion) for its semiconductor industry in response to the heightened uncertainty surrounding U.S. tariffs. This move comes after U.S. President Donald Trump hinted at announcing tariff rates on imported semiconductors, following his decision to exempt them from reciprocal tariffs. The U.S. Department of Commerce has also initiated an investigation into the national security implications of semiconductor imports.

The funding support from South Korea marks a significant increase from the previous year, with measures including subsidies for infrastructure development, low-interest loans for semiconductor companies, and training programs for domestic and foreign talent. South Korea, known for housing major chipmakers like Samsung Electronics and SK Hynix, heavily relies on semiconductor exports.

In 2024, South Korea’s semiconductor exports totaled $141.9 billion, comprising over 20% of the country’s overall exports. The U.S. remains a crucial export destination for South Korea, with exports reaching $127.8 billion in 2024. Acting South Korean President Han Duck-soo mentioned that Trump has directed immediate tariff negotiations with South Korea. The announcement has positively impacted the stock market, with Samsung and SK Hynix witnessing an increase in share prices.

This latest development underscores the importance of the semiconductor industry in both South Korea and the global market. Stay tuned for more updates on this evolving situation.