South Korea announced an increase in its semiconductor industry support package to 33 trillion won ($23.25 billion), up from 26 trillion won last year.
The move responds to rising competition from China and policy uncertainty under the current U.S. administration.
Financial assistance for the chips sector will rise to 20 trillion won from 17 trillion won.
The funding aims to help domestic companies manage higher global competition costs.
South Korea is home to top memory chipmakers Samsung Electronics and SK Hynix but lags in chip design and contract manufacturing. Samsung and SK Hynix have major investment plans in Yongin.
Semiconductor exports in 2024 were $141.9 billion, making up 21 percent of total exports; exports to China and the U.S. were $46.6 billion and $10.7 billion respectively.
United States President Donald Trump plans to announce new tariffs on imported semiconductors, with some flexibility for certain companies.
South Korea will consult the U.S. on Section 232 investigations into chip and biopharma imports to minimize negative impacts, Reuters news report said.
The government recently introduced emergency measures for the auto sector, including financial support, tax cuts, and subsidies.
The semiconductor funding will support infrastructure like underground transmission lines in Yongin and Pyeongtaek, Yonhap news report said.
An additional 3 trillion won will fund low-interest loans from 2025 to 2027. Plans include building fabrication plants, large-scale R&D projects, and support for next-generation chip development.
Efforts will also target talent development through local and international recruitment of experts and advanced degree holders.
TelecomLead.com News Desk
