Chips in the spotlight: U.S. imposes tariffs, South Korea pours money into the industry
15 April 11:01
US President Donald Trump plans to announce new duties on imports of semiconductor chips in the coming days. These measures will primarily affect Asian countries, which are the world’s main chip producers, so the most active of them have already begun to prepare for the new reality, Komersant ukrainskyi reports.
Trump and electronics
Earlier, the White House reported that smartphones and computers will not be subject to the 125 percent import duties imposed on Chinese goods. This is especially important for Apple, which manufactures most of its devices in China.
However, Secretary of Commerce Howard Latnick emphasized the temporary nature of these relaxations. According to him, the restrictions may be extended to smartphones, depending on the results of future national security investigations.
Trump confirmed that his administration is considering restricting imports throughout the electronics supply chain. The US president emphasized the priority of bringing chip and electronic component manufacturing back to the US, but at the same time assured that the government would seek to avoid creating excessive obstacles for business.
Today, the US, like the rest of the world, imports chips from Asia.
The total volume of semiconductor imports to the United States in 2023 amounted to $25.4 billion.
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South Korea is investing in the industry
South Korea was the first among these countries to announce significant changes in the semiconductor industry, as it is its most important industry. Therefore, South Korea has announced an increase in the package of state support for the strategic semiconductor industry to 33 trillion won (about $23.25 billion), which is a quarter more than last year’s investments. This is stated in a joint statement by the government, including the Ministry of Trade.
Seoul explained that the decision was made in response to increased international competition, primarily from Chinese companies, as well as growing political uncertainty in the United States.
The government also announced the expansion of the financial assistance program for chipmakers: up to $14 billion. The funds should help companies withstand rising global costs and remain competitive.
“We have to adapt to a rapidly changing environment, especially in the context of a possible trade escalation by the United States,”
– said Finance Minister Choi Sang-mok after a government meeting on Tuesday.
Semiconductors are South Korea’s “bread and butter”
South Korea remains one of the world’s leading chip manufacturers, particularly in the memory segment. The country is home to such giants as Samsung Electronics and SK Hynix, which control the lion’s share of the global DRAM and NAND market. At the same time, Korea is somewhat inferior to its competitors in the areas of chip design and contract manufacturing.
In 2024, semiconductor exports from South Korea reached $141.9 billion, accounting for 21% of the country’s total exports. The main markets are China ($46.6 billion) and the United States ($10.7 billion).
Therefore, Choi Sang-mok promised that the Korean government would not escalate the trade war, but would actively cooperate with Washington to minimize the risks to Korean chip and biopharmaceutical manufacturers.
Last week, Seoul also unveiled emergency measures to support the auto industry to soften the blow of potential U.S. tariffs. The package includes financial assistance, tax breaks, and subsidies to stimulate domestic demand. In addition, the government announced talks with the United States to protect the industry and find new markets.
