Insignia Consultants | South Korea unveils $23 billion support package for chips amid US tariff uncertainty
South Korea unveils $23 billion support package for chips amid US tariff uncertainty
SEOUL, April 15 (Reuters) - South Korea announced on Tuesday an increase in its support package for the country's vital semiconductor industry to 33 trillion won ($23.25 billion), up about a quarter from a 26 trillion won package unveiled last year.
The measures come in response to calls on the government to expand support at a time of growing policy uncertainty under the current U.S. administration and rising competition from Chinese rivals, the government said in a statement.
Seoul will also ramp up a financial assistance programme for the chips industry to 20 trillion won, versus the previous 17 trillion won, according to the joint statement from various ministries including the trade ministry.
South Korea's decision to pump more money into its key chips sector is designed to help companies cope with heavier costs as they compete globally, it said.
Asia's fourth-largest economy is home to the world's top memory chip makers, Samsung Electronics (005930.KS), opens new tab and SK Hynix (000660.KS), opens new tab, though they have fallen behind some rivals in areas such as chip design and contract chip manufacturing.
