The move by the Government of Korea follows reports that U.S. President Trump intends to soon unveil new tariff rates on imported semiconductors
rcrwireless.com, Apr. 15, 2025 –
In brief – why this matters
–South Korea has unveiled a massive KRW 33 trillion ($23.25 billion) semiconductor support plan amid rising U.S. protectionism, significantly increasing its original aid proposal to safeguard its chip sector.
–The package includes expanded infrastructure subsidies—covering up to 70% of corporate underground transmission costs and doubling budget support limits for mega-clusters.
–It also boosts domestic innovation through mini-fabs, AI chip demonstration tools, and talent recruitment, including national and international research programs to attract top semiconductor researchers.
The Government of South Korea announced a KRW 33 trillion ($23.25 billion) support package aimed at bolstering its critical semiconductor sector, as rising tensions over potential U.S. tariffs generated uncertainty for domestic chipmakers.
The move follows reports that U.S. President Donald Trump intends to soon unveil new tariff rates on imported semiconductors, having excluded them from sweeping “reciprocal” tariffs announced last Friday.
In a social media post on Monday, Trump said he would launch an investigation into the “entire electronics supply chain,” citing national security concerns.
The U.S. Department of Commerce also issued a notice saying it will begin a formal investigation to assess the national security implications of importing semiconductors, chipmaking equipment and related products.
“Assistance for the semiconductor industry, expected to be targeted by item-specific tariffs by the U.S. government, will be significantly increased from the original KRW 26 trillion to KRW 33 trillion. Over KRW 4 trillion in fiscal resources is also planned to be injected by 2026. Exceptional support will be provided for infrastructure development, including power and water supply,” Korea’s Ministry of Finance said in a statement.
The government also noted it will cover 70% of the corporate burden for undergrounding transmission lines for the semiconductor cluster in Yongin and Pyeongtaek. “The national budget support ratio for infrastructure in specialized zones for advanced strategic industries will be significantly increased to 30-50%; for large-scale clusters with investments exceeding KRW 100 trillion, the limit for national budget support will be raised from KRW 50 billion to KRW 100 billion,” it added.
The ministry also highlighted that a new investment subsidy will be introduced for SMEs producing advanced materials, components and equipment. In addition, mini-fabs, which closely resemble actual mass production environments, will be established to push forward the domestic semiconductor technology innovation platform.