South Korea announces over $23 billion for chip sector as Trump tariffs on semiconductor imports loom
CNBC4 days
South Korea Boosts Chip Industry Aid to $23B Amid US Tariff Threat
Above: SK Hynix's 128GB DDR5 memory module on display at the Semiconductor Exhibition (SEDEX) in Seoul, South Korea, on Oct. 23, 2024. Image copyright: SeongJoon Cho/Bloomberg via Getty Images
The Spin
Pro-establishment narrative
The increased support package is essential to maintain South Korea's global competitiveness in semiconductors and protect its vital export industry amid rising Chinese competition and uncertain U.S. trade policies. The comprehensive funding approach will strengthen the entire semiconductor ecosystem, from research and development to manufacturing infrastructure, ensuring long-term industry sustainability.
Opposition narrative
While the government’s announcement is welcome and a step in the right direction, it does not go far enough. If the government wishes to safeguard South Korea’s semiconductor industry, it will need to commit more resources to compete with the direct state subsidies offered by competitors in the semiconductor space, like the United States and its CHIP Act.