Seoul to Boost Semiconductor Sector with $5 Billion

Chip Sector Support Program

 Seoul to Boost Semiconductor Sector with $5 Billion

Seoul announced Tuesday that it plans to inject an additional $4.9 billion into South Korea's semiconductor industry due to "increasing uncertainty" caused by the tariffs threatened by US President Donald Trump on imported semiconductors.

The South Korean Finance Ministry said in a statement that "an aggressive financial investment plan has been planned to help local companies meet the growing challenges in the global semiconductor race." It added that the chip sector support program will increase by $4.9 billion.

Seoul's decision comes a day after Trump said he would announce new tariffs on semiconductor imports "within the next week." US Commerce Secretary Howard Lutnick said the new tariffs on semiconductors could take effect "within a month or two."

These chips are vital to major US technology companies. So far, US imports of these chips have been exempt from the sweeping tariffs Trump recently imposed on his country's trading partners.