By Alimat Aliyeva

South Korea announced on Tuesday an expanded support package worth more than $23 billion for its vital semiconductor industry.

According to a government statement, the measures are being implemented in response to growing political uncertainty under the current U.S. administration and rising competition from Chinese firms. The announcement follows industry calls for the government to take stronger action to maintain South Korea’s global edge in chip manufacturing.

Asia's fourth-largest economy is home to the world's leading memory chip producer, and semiconductors remain a cornerstone of the country's export economy. In 2024, South Korea’s semiconductor exports totaled $141.9 billion—accounting for 21 percent of its total exports, according to official data. Of that, $46.6 billion went to China and $10.7 billion to the United States.

Adding to global trade tensions, U.S. President Donald Trump said on Sunday that he would announce new tariffs on imported semiconductors next week. He added that some companies in the sector may receive flexibility, though details remain unclear.

Just last week, South Korea also rolled out emergency support measures for its automotive industry to cushion the blow from proposed U.S. tariffs. The package includes financial aid, tax cuts, and subsidies to stimulate domestic demand. The government has also pledged to intensify diplomatic efforts with the U.S. and seek new market opportunities abroad.

In addition to financial backing, the semiconductor support package includes plans to accelerate R&D in next-generation chips and boost workforce training. The government aims to strengthen South Korea’s role in the global supply chain—not just as a memory chip powerhouse, but as a leader in system semiconductors and AI-related technologies.

South Korea’s strategic investment highlights its ambition to remain at the forefront of the global tech race, as semiconductors increasingly underpin everything from smartphones to electric vehicles and advanced AI systems.