(The Guardian) South Korea plans extra $4.9bn help for microchips after US begins 'national security' probe into semiconductor industry
South Korea has announced plans to invest an additional $4.9bn in the country’s semiconductor industry, citing “growing uncertainty” over US tariffs.
“An aggressive fiscal investment plan has been devised to help local firms navigate mounting challenges in the global semiconductor race,” the finance ministry said. “To foster a dynamic, private sector-led ecosystem for semiconductor innovation and growth, the government will increase its investment in the sector from 26 trillion won ($18.2bn) to 33 trillion won,” the ministry added.
Semiconductors are tiny chips that power just about everything, including computers, mobile phones and cars. They are central to the global economy. The UK, the US, Europe and China rely heavily on Taiwan for semiconductors.
But South Korea – Asia’s fourth largest economy – is also a major exporter to the US and concerns about the semiconductor sector have hit the Seoul-listed shares of the world’s largest memory chip maker Samsung, and largest memory chip supplier SK Hynix.
The statement of extra investment from South Korea’s finance ministry comes after the Trump administration launched investigations into imports of pharmaceuticals and semiconductors on national security grounds.
These industries - so far exempt from the 10% US import charges that began on 5 April - may face tariffs after the probes are complete.
US President Donald Trump has directed the US commerce department to conduct a three-week investigation into the imports, during which time public comments on the issue will be heard before a decision is made.
Trump said on Sunday he would be announcing a tariff rate on imported semiconductors over the next week, adding that there would be flexibility with some companies in the sector.
On 2 April, Trump announced sweeping tariffs on global trading partners, including the 25 percent on South Korean goods, before backtracking and suspending their implementation for 90 days.
Even so, “duties targeting specific sectors such as semiconductors and pharmaceuticals, remain on the horizon”, finance minister Choi Sang-mok said during a meeting. “This grace period offers a crucial window to strengthen the competitiveness of South Korean companies amid intensifying global trade tensions,” he added.
South Korea has announced plans to invest an additional $4.9bn in the country’s semiconductor industry, citing “growing uncertainty” over US tariffs.
“An aggressive fiscal investment plan has been devised to help local firms navigate mounting challenges in the global semiconductor race,” the finance ministry said. “To foster a dynamic, private sector-led ecosystem for semiconductor innovation and growth, the government will increase its investment in the sector from 26 trillion won ($18.2bn) to 33 trillion won,” the ministry added.
Semiconductors are tiny chips that power just about everything, including computers, mobile phones and cars. They are central to the global economy. The UK, the US, Europe and China rely heavily on Taiwan for semiconductors.
But South Korea – Asia’s fourth largest economy – is also a major exporter to the US and concerns about the semiconductor sector have hit the Seoul-listed shares of the world’s largest memory chip maker Samsung, and largest memory chip supplier SK Hynix.
The statement of extra investment from South Korea’s finance ministry comes after the Trump administration launched investigations into imports of pharmaceuticals and semiconductors on national security grounds.
These industries - so far exempt from the 10% US import charges that began on 5 April - may face tariffs after the probes are complete.
US President Donald Trump has directed the US commerce department to conduct a three-week investigation into the imports, during which time public comments on the issue will be heard before a decision is made.
Trump said on Sunday he would be announcing a tariff rate on imported semiconductors over the next week, adding that there would be flexibility with some companies in the sector.
On 2 April, Trump announced sweeping tariffs on global trading partners, including the 25 percent on South Korean goods, before backtracking and suspending their implementation for 90 days.
Even so, “duties targeting specific sectors such as semiconductors and pharmaceuticals, remain on the horizon”, finance minister Choi Sang-mok said during a meeting. “This grace period offers a crucial window to strengthen the competitiveness of South Korean companies amid intensifying global trade tensions,” he added.
